PostgreSQL is a production-quality, open-source database server software known for its extensibility and versatility, suitable for a variety of use cases. It features a wide range of innovative capabilities such as user-defined data types, MVCC, and full-text indexing, making it popular among organizations like Cisco, McAfee, and Morgan Stanley. Recent developments include enhancements like synchronous replication and bi-directional replication, with ongoing projects aimed at improving cloud computing and performance.