Difference between Clone and Template

Clone creates an  exact copy of a running Virtual Machine  at the time of cloning process	Template acts as a baseline image with the predefined configuration  as per organization standards
Cloning a virtual machine creates a exact duplicate copy of the virtual machine with the same configuration and installed software without performing any additional settings.	Create a template to create a master image of a virtual machine from which you can deploy multiple virtual machines
You can create a  clone of existing installed and Configured running virtual machine by right clicking  the VM and Clone.	You can create a template by converting a virtual machine to a template, cloning a virtual machine to a template, or cloning another template
VM clones are best suited in test and development environments where you want to create, test and work with exact copies of production servers without disturbing production servers by creating clone of the production virtual machine.	Templates are best suited for production environments where you want the mass deployment of virtual machines along with the installed OS and basic software, configured policy as per the security policy of your organization as a base Machine. Once template is deployed, you can install software depend on the role of the server like IIS,Database
VM Clones are not suited for mass deployment of Virtual Machines	Templates are best suited for Mass Deployment of Virtual Machines
We Cannot Convert back the Cloned Machine	You can convert the template back to virtual machine to update the base template with the latest released patches and updates and to install or upgrade any software and again convert back to template to be used for deployment of virtual machines with latest patches.
Cloned Virtual Machine Can be powered on	Templates cannot be powered on