What is the purpose for running rsync in dedicated server mode?

I am trying to work on a solid way to backup files from a production system to a backup system of the network. I'd like the system to be centralized of a sort, which is why I started looking at rsync.

Not having to go over SSH.

Hmm... But I want the transfers to go over ssh.

After doing a bit more reading, I am thinking the daemon mode is more for a file server, where multiple uploads will be coming in. Each time a remote client makes an attempt to upload data to the "server" running rsync in daemon mode, the rsync daemon forks a process to handle it.

Looks like I can use the standard rsync without the daemon mode to do what I need.

FYI - the boxes in question are two Centos 5.4 (amd64). One is a VM running on xen (client) the other is a stand alone box (server).