In the world of Infrastructure as Code (IaC), Terraform has long been a dominant force. It offered developers and DevOps teams a way to manage infrastructure using declarative configuration files, ushering in a new era of automation and consistency. But with recent licensing changes and community-driven concerns, a powerful alternative has emerged: OpenTofu.
If you’re evaluating which tool best fits your infrastructure goals, this guide offers a breakdown of OpenTofu vs Terraform, comparing their philosophies, capabilities, and use cases.
What Is Terraform?
Terraform, developed by HashiCorp, is an open-source IaC tool that allows users to define and provision infrastructure using the HashiCorp Configuration Language (HCL). It supports a wide array of cloud providers including AWS, Azure, GCP, and many third-party services through its vast provider ecosystem.
Terraform simplifies infrastructure management by enabling repeatable, version-controlled deployments. It’s widely adopted and has a mature ecosystem, but it’s recently undergone a major change—its licensing model has shifted from open-source to a Business Source License (BSL), sparking debate in the open-source community.
What Is OpenTofu?
OpenTofu is a community-driven fork of Terraform, launched by the Linux Foundation in response to Terraform’s licensing change. Unlike Terraform’s BSL, OpenTofu remains truly open-source under the Mozilla Public License 2.0 (MPL 2.0), ensuring long-term freedom and transparency for its users.
OpenTofu aims to stay 100% compatible with Terraform’s configuration language and behavior, while also fostering a more inclusive and collaborative development environment. Its goal is to empower organizations with an open, stable, and vendor-neutral infrastructure tool.
Why Did OpenTofu Emerge?
The creation of OpenTofu was prompted by concerns over Terraform’s shift away from open-source principles. By adopting a more restrictive license, Terraform limited how other projects and companies could use and extend the tool.
For the community, especially companies that rely heavily on open tooling, this posed a risk. OpenTofu emerged to protect users’ ability to use, extend, and contribute to an IaC tool without commercial restrictions. Major cloud providers and infrastructure companies have backed the project, giving it instant credibility and momentum.
Key Differences Between OpenTofu and Terraform
1. Licensing Philosophy
Terraform now operates under a BSL, meaning its source code is visible, but its usage is restricted for certain commercial applications. OpenTofu, on the other hand, is fully open-source and allows unrestricted commercial and non-commercial use.
2. Community Governance
Terraform is governed by HashiCorp, which means roadmap decisions are made internally. OpenTofu is governed by the Linux Foundation and a diverse group of contributors, ensuring a more democratic and transparent process.
3. Future Compatibility
While OpenTofu is currently compatible with Terraform, the two tools may diverge over time. OpenTofu intends to remain compatible with the core Terraform ecosystem but is also open to community-led innovation that may evolve its feature set independently.
4. Ecosystem Support
Terraform benefits from a mature ecosystem of providers and modules. However, OpenTofu is rapidly gaining support from the community and cloud vendors, who are contributing to ensure parity and future innovation.
Use Cases: When to Choose OpenTofu or Terraform
Use Terraform If:
- You’re already locked into Terraform Cloud or Terraform Enterprise and rely on their features.
- Your organization doesn’t mind the licensing change or has enterprise agreements in place.
- You prioritize stability and want to avoid adopting a newer fork in its early stages.
Use OpenTofu If:
- Your company values open-source freedom and wants to avoid license restrictions.
- You’re building tools or modules that rely on an open and permissive license.
- You want to contribute to or benefit from a community-driven IaC tool.
Industry Backing and Trust
OpenTofu is not just a fringe project. It has backing from major tech players including AWS, Google Cloud, GitLab, and Harness. This support ensures long-term viability and rapid development, making OpenTofu a credible alternative for businesses of all sizes.
Additionally, OpenTofu’s transparent governance model appeals to organizations that want more influence over the tools they depend on for infrastructure provisioning.
Final Thoughts
The decision between OpenTofu and Terraform ultimately comes down to your organization’s priorities. If you value a commercially backed tool with a long track record, Terraform remains a reliable choice. But if you’re looking for true open-source software with community-driven development and no licensing ambiguity, OpenTofu is an excellent alternative.
As infrastructure as code continues to evolve, having options like OpenTofu ensures the ecosystem remains healthy, competitive, and aligned with the values of transparency and openness.
Whether you’re migrating from Terraform or starting fresh with infrastructure automation, evaluating both tools with your long-term goals in mind is key.
