Operating System Linux Vs. Windows

Source code
The core of the Linux operating system, also known as the kernel, is open source and distributed under the GNU General Public License version 2: all developers have access to the source code and can modify it to distribute as they wish. Windows is a proprietary software, developed by and trademarked by the Microsoft Corporation. The Windows operating system source code is can only be developed, modified and distributed by Microsoft.
Editions
Linux distributions, commonly called 'distros' are packages that include the Linux kernel, a user interface like the GNOME or KDE desktop and software packages. Expert users can forego a distribution completely and install the kernel and supporting software like the desktop interface and applications separately. Microsoft Windows is available in different editions for different user environments. For example, Windows 7 has different editions for home and business users.
Hardware
Linux is a non-proprietary software and can be installed on various hardware configurations. The open source nature of Linux allows users to modify the kernel to suit particular hardware needs. Some Linux distributions are available as 'Live Distros' where the user can try the Linux distribution via a CD or USB drive without having to install it on a live hard drive. Windows can be installed on a variety of different computer systems, including laptops, desktops and tablets. Mobile devices need a separate version of Windows called Windows Phone which is only installed by device manufacturers.
Licensing
Linux licensing models are dependent on the distribution. Most Linux distributions are free to download and use for both personal and commercial use. Companies like Red Hat offer a free to use, modify and distribute version of Linux for businesses called Red Hat Enterprise Linux (RHEL) and Fedora, a distribution aimed at end users. Both are free but companies using RHEL can choose to pay an annual subscription fee, allowing them to receive enhanced product support. Microsoft has designed several licensing models for the Windows operating system, with different price structures for home users, small businesses and enterprise users. Pricing for home users starts at $119.99 for Windows Home Premium. (Pricing as of May 9, 2011.)