Templates and Images

What is the difference between lxc images and templates?

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LXC templates are provided by LXC itself to create new containers. Images are Cloudmin's system of packaging up VMs.

How are they stored differently for lxc? And how does cloudmin look for lxc templates?

Images are stored on the Cloudmin master, as tar.gz files of a container filesystem.

Templates are scripts on the LXC host that typically setup a container with some distribution, based on downloaded files.