What does this mean exactly?

The manual says, “upgrade client software from the web interface,” and “If a client is out-of-date, a ‘needs upgrade’ message appears for it in the client list. Check the box at the start of the row for any clients you need to upgrade. Click the Upgrade button below the client list.”

Does this mean that the version of hclient that is installed is not compatible with the version of Houdini I'm running? If so, what's it doing? Downloading a new version and installing it on my system?