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Linux is an operating system, which is free and open-source. Linux is the name given to all of the UNIX-like operating systems that are based on the Linux kernel. Those different operating systems are called Linux Distributions.
It is probably the most popular free open-source software there is.
Linux is a part of the LAMP bundle, where the L stands for Linux OS. The different distributions of Linux are targeted at different user groups. They differ in interface, system tools, and various other features: