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Infrastructure as Code (IaC): Terraform vs. CloudFormation

An in-depth comparison of declarative infrastructure tools to help you manage your cloud deployments reliably and consistently.

What is Infrastructure as Code?

Provisioning cloud infrastructure manually using the web console is error-prone, slow, and impossible to track. Infrastructure as Code (IaC) allows engineers to define servers, networks, databases, and permissions in text configuration files. This code can be version-controlled, reviewed, and run automatically.

Terraform vs. AWS CloudFormation

The two most popular tools for IaC are HashiCorp Terraform and AWS CloudFormation.

  • Terraform: An open-source, cloud-agnostic tool. You can use it to manage resources on AWS, Azure, GCP, Cloudflare, and hundreds of other platforms using the HashiCorp Configuration Language (HCL).
  • CloudFormation: AWS’s proprietary tool. It is deeply integrated into the AWS ecosystem, offering day-one support for new AWS services, but it cannot manage resources outside of AWS.
# Simple Terraform resource block
resource "aws_instance" "app_server" {
  ami           = "ami-0c55b159cbfafe1f0"
  instance_type = "t3.micro"
  tags = {
    Name = "ANN-AppServer"
  }
}