How can Azure Resource Manager (ARM) templates be used effectively?

Azure Resource Manager (ARM) templates are primarily designed to define the infrastructure and configuration of Azure resources in a declarative manner. This means that users can specify what resources they need, such as virtual machines, storage accounts, or databases, along with their configurations, all in a JSON format. When an ARM template is deployed, Azure Resource Manager takes care of the provisioning and management of these resources in a consistent and repeated manner, ensuring that the specified state of the environment is achieved.

Using ARM templates allows teams to leverage infrastructure as code, promoting consistency and reducing the chances of human error during resource deployment. Templates can be reused and versioned, making it easy to manage environments across different stages of development, testing, and production. Furthermore, they support parameterization and modularization, enabling the customization of deployments without changing the template structure.

The other options are focused on aspects not related to the specific functionality of ARM templates. Managing user permissions and access typically falls under Azure role-based access control (RBAC). Monitoring application performance involves using Azure Monitor or Application Insights, while storing data on a blockchain is entirely unrelated to ARM templates and instead refers to specialized services or solutions designed for blockchain technology.