ubuntu a desktop OS?

[tata dano]

Hello everybody,
 
I have just recieved my Ubuntu 5.04 last week. And thenI try to install it on one of my pc for testing and get to know it as a distribution. But according to some local linux people here they said that Ubuntu is just designed to be a desktop OS. In this connection, I planned to replace my old FC1 (Internet and local network server) with Ubuntu. Now I would like to ask your technical opinion if Ubuntu is good, efficient and effective to be used as my Internet and local network server or it is just for desktop purposes only?
 
Your inputs are highly appreciated. Thank you.
 
Tata

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