Some developers/sys-admins simply clone the repository to their server, then simply point their web-server to that directory. There are different ways of deploying an application, but this is one of them. Usually we push the new code to a remote server, where the server takes care of testing the code and then deploying the application. However, we not only use git to version control, but also to deploy applications.
We all do, in fact, this blog is currently being versioned by git. Developers use git to version control their source code.