Deploy requires two servers
- A source server (which you will be deploying from)
- A destination server (which you will be deploying to)
While these do need to be separate and distinct Drupal installations, they do not actually need to be on two servers. They can be in separate subdirectories or virtual hosts on a single server and everything will work perfectly well. Two sites in a multi-site installation may work depending on the table sharing scenarios. This is beyond the scope of this guide.
Note: There is a different installation process depending on whether you are installing a new fresh install of Drupal on both servers or if you already have an existing site with lots of content that you want to split into "source" and "receiving" sites (a.k.a. "stage" and "live").
In either case, you'll want to make sure the servers have the same time, otherwise there may be synchronization issues. See http://www.cyberciti.biz/faq/howto-install-ntp-to-synchronize-server-clock/ for a nice set of instructions on installing the network time protocol (ntp) on CentOS, or search the internet for instructions for your OS.
Instructions for Fresh Drupal Install on Both Servers