The whole point of the SQL Solution is to interface with databases.
So, having a database on your system is a good idea. :)
The program works with
MySQL,
PostgreSQL,
SQLite
and ODBC databases.
SQL Solution is a set of PHP scripts. Thus, you'll need PHP installed on your server. It has to be version 5 or later.
Your PHP installation will need the appropriate mysql, mysqli, pgsql, sqlite, sqlite3, or ODBC database extensions. For more information on this, check the PHP Manual's Installation section.