What is this Mysterious Folder named "iCloudBackup" inside MobileSync?

I have seen some posts here and elsewhere where people have this subfolder "iCloudBackup" inside the MobileSync folder. I'm attaching a couple of screenshots for the same.

Is this folder created if you select "Backup to iCloud" in iTunes when the iDevice is connected to a computer? As far as I know Mobilesync is the folder associated with iTunes in which there is a "Backup" folder created which stores local backups of idevices. But what's the "iCloudBackup" folder?