An application connection template is a model or pattern used to standardize connection properties and values for a specific application connections so that they can be reused. A template allows you to quickly create actual application connections.
Application Connection Templates are automatically created at the MBO package deployment time with the key properties already set based on the MBO package deployment settings. Commonly used properties include, the application ID, security configuration(used for automatic on-boarding), domain (used to synchronize with the MBO packages of that application).
In addition to those settings, other properties such as those in "Connections" and "Security Settings" inherit default values based on the server configuration. Those values are automatically propagated to the client application and used as the default values. Administrators must ensure that those settings are accurate for a production deployment; if not modify them as required to meet the connection needs of various applications.
You can use these built-in templates or create new ones as your deployment environment dictates.