A virtual machine template (or simply a template) is a set of files and parameters that represents a complete virtual machine. Templates are typically used to create multiple similar virtual machines.
Virtual machine templates appear in the All virtual machines group on the management server along with other virtual machines.
In terms of backup and recovery, a virtual machine template acts as a normal virtual machine. You can back up its disks, recover its disks and files, add it to static or dynamic groups, and perform other operations described in this document.
Virtual machine templates are unrelated to OVF templates that are used to deploy Agent for ESX(i) (Virtual Appliance).