The needs you have for a server distro are about the polar opposite of what you want in a desktop distro — even assuming stability is paramount in both (when even that tends to be a different compromise).

Ubuntu would be my last choice for server distro because it makes just about all the wrong choices — overaggressive adoption of new technology, not enough stability, etc.

The Microsoft example is the exception that proves the rule. I don’t think Microsoft’s server OS has had that much of an impact on their desktop deployment. They have basically two OSes — and many people deploy BSD / Linux over Windows because they feel the server OS doesn’t fit their needs.

I feel stability is extremely important and is not all a matter of perception. Any Linux newcomer who researches Ubuntu hesitates (as I did) at downing,burning and using a buggy,only-supported-for-18-months version of (place name here) when they can visit the site and down Arguing Aardvark a few months down the road? Stay put and make the next version of Ubuntu last. Iron out all the problems instead of racing ahead only to fall behind. Engender some commitment from potential new users by committing to them with some long-term stability.

Ubuntu’s strengths are community and the desktop and they should play to those first and foremost, when… not if, some of those strengths result into major innovation on the server end then they would be a force to be recognised in the server world.

However I believe that too much focus on the server too early will ultimately harm the community and ground breaking innovation that’s happening there and should ubuntu fail on the desktop, I don’t see how they would hope to succeed on the server.

But Ubuntu does stand to penetrate the server space right alongside Redhat and Novell. Canonical has been very savvy in building incremental alliances with some not-insignificant names including IBM and HP.

I would not in any way denigrate the progress in the desktop space, but it will come more slowly – technology adoption takes a fairly predictable adoption pattern that follows an S-curve – Linux has not reached anywhere near the tipping point in the desktop space, but in many organizations is already becoming disruptive in the server space. Many companies who are completely uninterested in Linux as a platform have Linux based technologies either in their server rooms or as embedded systems. The latter technology I think is also poised to penetrate the marketplace for Linux more rapidly than in the desktop space, IMHO.

Look at the big names which have already certified Ubuntu server – Lotus Notes and DB2 do not have majority market share, to be sure, but neither are they insignificant players.

There’s much more to be said, but in conclusion I’m inclined to agree with Joe that the server space is lower hanging fruit for Canonical than the desktop space.

So why does Ubuntu need a Server side, now?

Bug #1 (liberation): Microsoft has a majority market share [edit]

Quote:
Microsoft has a majority market share in the new desktop PC marketplace.
This is a bug, which Ubuntu is designed to fix.

Non-free software is holding back innovation in the IT industry, restricting access to IT to a small part of the world’s population and limiting the ability of software developers to reach their full potential, globally. This bug is widely evident in the PC industry.

Steps to repeat:

1. Visit a local PC store.

What happens:
2. Observe that a majority of PCs for sale have non-free software pre-installed.
3. Observe very few PCs with Ubuntu and free software pre-installed.

What should happen:
1. A majority of the PCs for sale should include only free software like Ubuntu.
2. Ubuntu should be marketed in a way such that its amazing features and benefits would be apparent and known by all.
3. The system shall become more and more user friendly as time passes.

https://launchpad.net/ubuntu/+bug/1

I think I can see part of it, use the desktop success to push the brand and gain trust, make money on the sever side eventually.

Redhat OWN the server side atm and you cant fight them head-on and win.
Windows server became popular to a large extent because of people being familiar with the desktop product.

Canonical are trying to commoditise the Sever side and eat Windows server alive – an ambitious goal;)

Also don’t forget that the Desktop brings with it a huge Community and Mind share.

One last thought, a large scale success on the desktop helps get hardware manufactures to write drivers for Ubuntu. I still can not believe that Dell now sells PC’s with Ubuntu installed! Big Win.

Linux already does servers, and it does them very well!!
What it doesn’t to super well is desktops.