Linux is a "user friendly" version of the UNIX operating system.
UNIX was originally developed about 30 years ago and was used primarily as a research operating system in universities, as companies in the 80's began developing high powered work stations, they each developed their own versions of UNIX. This made a unified sale of UNIX hard. Microsoft developed Windows NT to answer this problem. NT offered most of the same features of UNIX but was compatible with all Windows applications. Windows became the leader in the OS world so to speak.
Linux was developed by Linus Torvalds based on UNIX but more user friendly. It is an open source operating system that is free, unlike Windows which can be expensive and had a lot of bugs until the XP verision, LOL. It seems Vista does too. Open source means you can get into the code and modify things yourself, as well as being free.
See: http://computer.howstuffworks.com/question246.htm for more details
The "who" would use it can include: people who want to experiment with their operating system, or need a great deal of control over their operating system and people with PC's who have personal problems with Microsoft and their dominance over the operating system world.
Below is a screenshot of a workstation using Linux
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