PHP has come a long way in the last few years.
  Growing to be one of the most prominent languages
  powering the Web was not an easy task. Those of
  you interested in briefly seeing how PHP grew out
  to what it is today, read on.  Old PHP releases
  can be found at the
  PHP Museum.
 
    PHP succeeds an older product, named PHP/FI. PHP/FI was
    created by Rasmus Lerdorf in 1995, initially as a simple
    set of Perl scripts for tracking accesses to his online
    resume. He named this set of scripts 'Personal Home Page
    Tools'. As more functionality was required, Rasmus wrote
    a much larger C implementation, which was able to
    communicate with databases, and enabled users to develop
    simple dynamic Web applications. Rasmus chose to 
    release
    the source code for PHP/FI for everybody to see, so that
    anybody can use it, as well as fix bugs in it and improve
    the code.
   
    PHP/FI, which stood for Personal Home Page / Forms Interpreter,
    included some of the basic functionality of PHP as we know
    it today. It had Perl-like variables, automatic interpretation
    of form variables and HTML embedded syntax. The syntax itself
    was similar to that of Perl, albeit much more limited, simple,
    and somewhat inconsistent.
   
    By 1997, PHP/FI 2.0, the second write-up of the C implementation,
    had a cult of several thousand users around the world
    (estimated), with approximately 50,000 domains reporting as
    having it installed, accounting for about 1% of the domains
    on the Internet. While there were several people contributing
    bits of code to this project, it was still at large a one-man
    project.
   
    PHP/FI 2.0 was officially released only in November 1997, after
    spending most of its life in beta releases. It was shortly
    afterwards succeeded by the first alphas of PHP 3.0.
   
    PHP 3.0 was the first version that closely resembles PHP as
    we know it today. It was created by Andi Gutmans and Zeev
    Suraski in 1997 as a complete rewrite, after they found
    PHP/FI 2.0 severely underpowered for developing an eCommerce
    application they were working on for a University project.
    In an effort to cooperate and start building upon PHP/FI's
    existing user-base, Andi, Rasmus and Zeev decided to cooperate
    and announce PHP 3.0 as the official successor of PHP/FI 2.0,
    and development of PHP/FI 2.0 was mostly halted.
   
    One of the biggest strengths of PHP 3.0 was its strong
    extensibility features. In addition to providing end users
    with a solid infrastructure for lots of different databases,
    protocols and APIs, PHP 3.0's extensibility features attracted
    dozens of developers to join in and submit new extension
    modules. Arguably, this was the key to PHP 3.0's tremendous
    success. Other key features introduced in PHP 3.0 were the
    object oriented syntax support and the much more powerful
    and consistent language syntax.
   
    The whole new language was released under a new name, that
    removed the implication of limited personal use that the
    PHP/FI 2.0 name held. It was named plain 'PHP', with the
    meaning being a recursive acronym - PHP: Hypertext Preprocessor.
   
    By the end of 1998, PHP grew to an install base of tens of
    thousands of users (estimated) and hundreds of thousands of
    Web sites reporting it installed. At its peak, PHP 3.0 was
    installed on approximately 10% of the Web servers on the
    Internet.
   
    PHP 3.0 was officially released in June 1998, after having
    spent about 9 months in public testing.
   
    By the winter of 1998, shortly after PHP 3.0 was officially
    released, Andi Gutmans and Zeev Suraski had begun working
    on a rewrite of PHP's core. The design goals were to improve
    performance of complex applications, and improve the
    modularity of PHP's code base. Such applications were made
    possible by PHP 3.0's new features and support for a wide
    variety of third party databases and APIs, but PHP 3.0 was
    not designed to handle such complex applications efficiently.
   
    The new engine, dubbed 'Zend Engine' (comprised of their
    first names, Zeev and Andi), met these design goals
    successfully, and was first introduced in mid 1999. PHP 4.0,
    based on this engine, and coupled with a wide range of
    additional new features, was officially released in May
    2000, almost two years after its predecessor, PHP 3.0.
    In addition to the highly improved performance of this
    version, PHP 4.0 included other key features such as
    support for many more Web servers, HTTP sessions, output
    buffering, more secure ways of handling user input and
    several new language constructs.
   
    Today, PHP is being used by hundreds of thousands of developers
    (estimated), and several million sites report as having it
    installed, which accounts for over 20% of the domains on the
    Internet.
   
    PHP's development team includes dozens of developers, as well
    as dozens others working on PHP-related projects such as PEAR
    and the documentation project.
   
    PHP 5 was released in July 2004 after long development and several
    pre-releases. It is mainly driven by its core, the Zend Engine 2.0 with a
    new object model and dozens of other new features. To get more information
    on this engine, see its webpage.