As Infrastructure as Code (IaC) becomes a core part of DevOps workflows, choosing the right tool can shape the efficiency, security, and flexibility of your cloud strategy. For years, Terraform by HashiCorp has been the go-to solution for managing infrastructure across cloud providers. But with recent licensing changes, a new contender has emerged: OpenTofu.
In this post, we’ll dive deep into OpenTofu vs Terraform, exploring their key differences, benefits, and which one is the right choice for your team.
Understanding Terraform
Terraform is a widely adopted IaC tool that enables teams to define and manage infrastructure using a declarative language called HCL (HashiCorp Configuration Language). It supports a broad range of cloud providers, and its modular ecosystem makes it highly flexible for various use cases—from cloud provisioning to on-prem orchestration.
For many, Terraform became synonymous with infrastructure automation.
Why OpenTofu Was Created
In 2023, HashiCorp announced a licensing shift for Terraform, moving from the open-source MPL 2.0 license to the more restrictive Business Source License (BSL). While the source code remained accessible, BSL introduced limitations—especially for competitors or those distributing Terraform in commercial ways.
This sparked concern in the open-source community and led to the creation of OpenTofu—a fully open-source fork of Terraform 1.5, governed by the Linux Foundation. The goal was to keep infrastructure automation truly open and collaborative.
OpenTofu vs Terraform: What Sets Them Apart?
The OpenTofu vs Terraform debate largely centers around philosophy and governance, not core functionality—at least for now.
Both tools allow you to write infrastructure definitions using HCL and manage them with similar workflows. In fact, OpenTofu is designed to be a drop-in replacement for Terraform 1.5, which means existing codebases can migrate without significant refactoring.
However, the differences start to appear when you look at licensing, governance, and future direction:
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Licensing: OpenTofu remains under the MPL 2.0 license, ensuring long-term freedom for users and developers. Terraform, now under BSL, restricts certain uses, especially in commercial contexts.
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Governance: Terraform is controlled solely by HashiCorp, while OpenTofu is maintained by the Linux Foundation and a wide community of contributors. This gives OpenTofu a more democratic development model.
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Future Roadmap: OpenTofu has committed to innovating independently and transparently, with new features influenced by community feedback. Terraform's roadmap remains tightly controlled by HashiCorp.
Why Choose OpenTofu?
If you’re evaluating OpenTofu vs Terraform, OpenTofu makes a strong case if your priorities include:
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True Open Source: No restrictions on how you use, distribute, or extend the software.
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Community-Driven Development: Built by a wide range of contributors with no single vendor dominance.
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Smooth Migration Path: Compatible with existing Terraform 1.5 configurations.
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Long-Term Flexibility: Ideal for teams building custom tooling or contributing back to the ecosystem.
When Terraform Still Makes Sense
Terraform continues to be a solid option, especially for organizations that:
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Depend on Terraform Cloud or Terraform Enterprise
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Require commercial support and official SLAs
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Rely on third-party integrations tailored for the Terraform ecosystem
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Prefer a stable product with a proven track record in production
While the licensing change might not affect internal use cases, it’s worth reviewing the BSL terms if you're embedding or redistributing Terraform.
OpenTofu vs Terraform: Which Should You Pick?
When comparing OpenTofu vs Terraform, the decision largely depends on your use case and future plans.
Choose OpenTofu if:
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You value open-source principles and community collaboration.
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You want legal clarity for modifying or distributing the tool.
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You're building infrastructure tooling or automation that requires flexibility.
Stick with Terraform if:
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You’re locked into Terraform Cloud or Enterprise.
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You rely on HashiCorp’s premium features and support.
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You need a tried-and-tested solution with broad enterprise adoption.
Final Thoughts
The emergence of OpenTofu marks an important moment in the IaC landscape. It gives teams a choice—and that choice is between a vendor-controlled, source-available model and a truly open-source, community-driven one.
OpenTofu vs Terraform isn’t just a comparison of tools; it’s a reflection of values. Whether you prioritize enterprise backing or open governance, both tools are powerful. The key is picking the one that aligns with your long-term goals.
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