Red Hat Enterprise Linux 5 (RHEL5) was released for servers and desktops last week, bringing much-anticipated virtualization and improved security features to Red Hat users and enthusiasts. Some early takes on the software from experts and analysts are positive. They say the built-in Xen-based virtualization and simplified Security Enhanced Linux (SE Linux) features were well worth the wait.

For large enterprise data centers, Red Hat debuted its RHEL5 Advanced Platform, a server OS that allows users to deploy an unlimited number of virtual machines on top of a host Red Hat system. Virtualization of storage resources is also supported in the Advanced Version. The software runs on a variety of server processor platforms, including 64-bit x86 and multicore chips.

On the desktop side, the new client operating system “is not an ‘eye candy’ distribution like Novell's SUSE Linux Enterprise Desktop, Mac OS X or Windows Vista,” says Tom Henderson, a member of the Network World Lab Alliance, who tested the server and desktop systems. (Read his full review here.) Support for supped-up graphics hardware and video capabilities are one focus of the new system. Familiar support for the GNOME environment, and an array of open source productivity, Web and collaboration tools are also in the mix.

Interestingly, Red Hat also got into the business of running an online open source software marketplace with the launch of its Red Hat Exchange. The company will use this service to sell other open source software packages — such as MySQL or SugarCRM — and provide a market place for other open source companies and users to buy, sell and collaborate on software.