Modern OS
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Linux is a modern operating system with:
protected memory, virtual memory, preemptive multitasking,
TCP/IP Stack.
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Standards/Portability
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Kernel and C library offer POSIX APIs.
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Open Source Code
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The source code of Linux is freely available under the GPL license.
There are no restrictions to use it and improve it.
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Scalability
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Linux works from 386CPUs up (there are even ports for 286)
as well as on other CPUs (MIPS, Crusoe, 68000, ....). On S/390 machines
up to mainframe computers and clusters.
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Costs
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manufacturers save developement costs
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