SME vs Windows (Pros):
* Easier to backup & restore - a "warm spare" server can be setup using free software (Affa) that can take over for the primary server within minutes in the event of a failure
* Proven security history (I am aware of no security issues on any up-to-date SME server that cannot be attributable to bad security choices made by the sysadmins - bad passwords or insecure PHP scripts, for example)
* Open source solution does not leave users hostage to future Microsoft plans
* Open source solution has lower up-front costs than proprietary solution (not much lower if you are a non-profit who can get Windows for almost $nothing...)
SME vs Windows (Cons):
* Exchange server is pretty cool and does a lot of stuff that nothing else does except Notes or Groupwise.
* "Knowledgeable" windows support can be obtained almost anywhere
SME vs Other Linux (Pros):
* SME is kept up-to-date by the developers, so it is easy for a careful network admin to keep their system patched with all security updates.
* SME community is knowledgable and friendly, providing help at almost any level (admittedly with frequent suggestions to read the manual, wiki, or whatever...)
* Proven security history - even for relatively inexperienced admins.
* Friendly developers, willing to help users develop custom solutions to specific problems - either by creating the solutions themselves (in exchange for $$$), or by helping and advising users who want to develop SME-compatible updates or addons
* SME is a great open-source server solution if your desired functions are included in the SME base or in the well-supported contribs.
* Less linux experience is required to safely and effectively administer a SME server compared to other Linux distros.
SME vs Other Linux (Cons):
* It can be tricky installing generic Linux software on a SME server
* An experienced linux admin will find it easier to add software to a "generic" linux/unix server.
* The SME templating system is non-standard and must be learned and understood before customizing a SME server outside of the bounds described in the wiki, forums, or bug tracker.
Conclusions:
* Get SME if what you need is included in the core feature set and well-supported contribs.
* Get SME if you can't afford a Windows / Exchange solution.
* Get SME if you don't have the amount of linux experience required to maintain a "generic" linux/unix server.
* Get SME if you can't afford to pay for linux support from one of the large linux vendors.
* Get SME if you want to actively support Open Source Software
* Get SME if you want to actively avoid Microsoft.