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Orac was a supercomputer, built by the eccentric genius Ensor, best known as the inventor of the Tarriel (or Tarial) cell, which, according to Avon, "led to a whole new generation of computers," and now exists in "every computer in the known worlds." Ensor himself did not refer to Orac as a computer, preferring to describe it as a "brain." Orac was, indeed, an extremely sophisticated machine. He could draw information from any computer containing Tarriel cells, and (at least sometimes) had the ability to control other computers remotely. He also had the ability to make predictions about the future, though we only saw him do that once (and, admittedly, it could be said that he cheated somewhat in order to make that particular future come about).
Orac's abilities were exceeded only by his ego. The machine regarded himself as highly superior to the organics he was forced to work with (and to the other computers he was forced to work with, as well), and, although he always seemed to obey a direct order, at least eventually, he always deeply resented being taken away from his "researches" in order to help the crew with their "petty problems," and in general tended to be highly uncooperative and difficult to work with.
Oh, and Orac comes from the universe of the tv-series "Blake's 7" (1978-1981), created for BBC by Terry Nation.
All my servers are named after legendary fictional computers. Others include Proteus, Colossos, Alpha-60, Mother, Deep Thought, HAL9000 and Obie.