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Successfully installing the Android SDK requires two other software systems that are not part of the Android SDK: the Java Development Kit (JDK) and the Eclipse integrated development environment (IDE). These two systems are not delivered as part of the Android SDK because you may be using them for purposes outside of Android software development, or because they may already be installed on your system, and redundant installations of these systems can cause version clashes.
The Android SDK is compatible with a range of recent releases of the JDK and the Eclipse IDE. Installing the current release of each of these tools will usually be the right choice. The exact requirements are specified on the System Requirements page of the Android Developers site: http://developer.android.com/sdk/requirements.html.