Seeing that this is your first post here, and noticing that you put it inside the 'assignment module' forum, may we infer that someone gave you an assignment on 'the future of linux' ???
If that is true, I really think there are more appropriate sites to help you make your assignment. Just a hint: you might want to split your assignment in two chapters:
- about the future of linux for servers (looking bright, I think)
- about the future of linux for desktop computers (you or your teacher is right: this was, I think, overhyped )
I thought you were going to be talking about the Nokia 770:
Nokia's new Linux based web tablet
I'd love to see Moodle being accessed with this, even if it's just a mock-up using the development tools.
But to answer your question, Linux is soon going to be running every computing device in your life, from your mobile phone up through your stereo and Tivo, your Moodle at school and college to your web search engine and online shops, to the supercomputer and particle accelerator at your local research University or Military lab.
The only place where Linux faces an uphill struggle is the home and white collar business desktop in the affluent west. However, there's about 6 billion people in the world and only about half a billion have any kind of preference as far as desktop operating system.
Linux (and open source in general) will make its mark by finding the fortune at the bottom of the pyramid and in doing so help lift millions of people out of poverty.