If a admin updates his system will the version of the software updated go up.
Eg: apache 1.1 ( before update )
apache 1.2 ( after update )
Yup... Would be v1.2 after upgrade. But it depends on the admin. You might find some admins will stick with an older release and just upgrade components. In that case it would still be v1.1.
I think that makes sence :P
The question is quite vague as I'm not sure what you mean by update. Updating can entail just patching or it can mean something else such as a complete release upgrade, etc. I think it would depend more on the software and method. A build release number may be augmented or it may not.