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Web applications that rely on databases for their operation, such as online stores or websites that require registration, need three things.
re: "some form of SQL must be installed on the server. SQL is a database software package..."
SQL is a language. Not a software package. A database software package would be needed. e.g. MySQL, Microsoft SQL Server or Access, Oracle, etc.
re: "Finally, PHP will need to be implemented in the web pages that users go through to access the web application." - wrong. PHP would be a choice, among many others. e.g. ASP, JSP, Java, C#, etc.
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