In my mind, the use of "deployment" and "installation" is the same as the use of "push" and "pull". A "deployment" is pushing a version of software to a number of clients. An "installation" is pulling some software onto a single computer and setting it up. I've used the terms interchangeably in some circumstances, for example, I don't see much difference between "deploying" and "installing" a web application, though I think "deploy" is in more common use for that action. By the way, be careful which forum you post in. This forum is for discussing performance. This topic is probably better suited for the General Computing Forum.
Installed software will directly interact with operating system, where as deployed application won't directly interact with operating system, the deployed application will interact with operating system to a installed software.
For example, application server is installed not deployed and application is deployed on the application server, we shouldn't say application is installed on application server, in the same way we shouldn't say application server is deployed.