ARM templates are stored as JSON text files. Because JSON is a plain-text, human-readable format, the files can be placed in any version-control system (for example, Git) where changes can be easily tracked, compared, and merged. They are not proprietary, binary, YAML-only, or PowerShell script files. The other options mischaracterize the format and would make version control or editing significantly harder-something Microsoft deliberately avoided by choosing JSON.
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Microsoft Azure Fundamentals AZ-900
Azure Management and Governance
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