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IAC tools compared: Terraform vs CloudFormation

Building and controlling infrastructure using code is known as IaC (Infrastructure-as-Code). The programmed infrastructure is simple to copy, scale, maintain, and document. IaC has several similarities, although automated deployments are quicker and more efficient than manual ones.

When deploying resources on their cloud platform, cloud providers frequently maintain an IaC tool, such as AWS CloudFormation, for AWS resources. There are alternative technologies available, though, that are independent of the cloud providers, and Terraform is an example of it.

You can find it challenging to choose between Terraform and CloudFormation while managing AWS resources. This article clarifies the differences between Terraform and CloudFormation.

What Exactly is CloudFormation?

An Infrastructure as Code (IaC) solution called AWS CloudFormation enables AWS cloud teams to model and configure connected AWS and outside resources in a tested and repeatable manner. 

The platform removes the burden of providing and configuring resources, allowing cloud teams to concentrate on the application. In addition, you may define resources using templates, and CloudFormation then uses these templates to plan and automate the configuration of resources and AWS applications. It supports various AWS ecosystem services, making it useful for startups and established businesses wishing to grow their infrastructure steadily. 

CloudFormation's salient features include the following:

  • JSON/YAML Declarative Configuration
  • The capacity to foresee changes in the environment
  • Stack management techniques for managing dependencies
  • Management of cross-regional accounts

What Exactly is Terraform?

Hashicorp's open-source infrastructure-as-code solution is called Terraform. It allows DevOps teams to version, share, and reuse resource settings by managing the lifecycles of computing infrastructure using declarative and readable configuration files. Teams can now easily commit the configuration files to version-control software for secure and effective departmental cooperation. 

To interact with other cloud providers, external APIs, or SaaS providers, Terraform uses plugins (providers). By classifying distinct pieces of infrastructure as resources, providers aid in standardizing, setting up, and managing the infrastructure automation deployment procedure.

Terraform's key attributes include the following:

  • Hashicorp Configuration Language (HCL) declarative configurations
  • Support for remote and local execution modes
  • Integration of default version control
  • Personal Registry
  • Able to ship with a complete API

What Distinguishes CloudFormation and Terraform Significantly?

Terraform and CloudFormation vary primarily because Terraform is a multi-cloud platform, while CloudFormation is tailored to AWS. While CloudFormation is an AWS-specific solution that offers a standard approach to providing and managing AWS resources, Terraform provides a common language for defining and provisioning cloud architecture.

Let's compare Terraform with CloudFormation side by side:

  • Easy to Use

Terraform spreads across numerous Cloud Service Providers, while CloudFormation is limited to AWS services. Moreover, Terraform covers the majority of the AWS resources.

  • Language

You may use YAML or JSON with CloudFormation, which makes reading and managing CloudFormation simple. However, a limit prevents AWS engineers from making CloudFormation templates bigger than 51MB, and developers must establish a layered stack for the templates if the template is bigger than this size restriction.

On the other hand, Terraform uses the HCL (Hashicorp Configuration Language) proprietary language from Hashicorp that is JSON-compatible. Also, there is no such limit of template size exists for Terraform.

  • State-Management

As a managed AWS service, CloudFormation regularly examines the infrastructure to determine whether the supplied infrastructure is retaining its state. If anything changes, a thorough response is sent to CloudFormation.

On the other hand, Terraform keeps the infrastructure's current state on the provisioning machine, which might be a remote virtual machine. Terraform takes the state as a map to explain the resources it controls and stores it as a JSON file. 

Contradictory changes are avoided in Cloudformation since CloudFormation controls the state by default. The state in Terraform is kept on a distant computer or in a virtual machine. The ability of Terraform states to be preserved in storage systems like S3 is another best practice for state management, and it must be specified in the backend, making management simpler and safer. 

  • Cost

The fact that both of these programs are free is by far their biggest feature. These apps have sizable communities offering tons of assistance and inspiration. Users only pay for the AWS service CloudFormation provides, which is the only cost. Terraform is also a free and open-source tool. However, Terraform provides a premium corporate edition with more collaboration and governance features.

  • Integration Of Multiple Clouds

Terraform is your best choice to deploy services across several cloud platforms. While CloudFormation is limited to AWS, Terraform supports all cloud suppliers, including GCP, Azure, and others. The latest version of Terraform now fully supports all of AWS's services to address AWS compatibility. Therefore, you are suggested not to choose CloudFormation if your setup includes numerous cloud deployments. If you are using AWS resources like EC2 and S3, it would be preferable to remain with CloudFormation. 

  • Modularity

As modules, CloudFormation employs collections of "nested stacks" or templates. You can import and export common configuration settings using these layered stacks, which serve as building blocks for your infrastructure. For instance, you may employ several resource configurations for various infrastructure or application needs. In these circumstances, you may designate a template specifically for these resources, which you can then import into any stack that requires it. 

When considering modularity, Terraform excels. Many third-party modules have native support in Terraform. It uses "providers" or plugins to implement resource types. By including a provider in your settings, you may add any resource—from AWS or a third party. Modules are another method Terraform utilizes in group settings. By handling connected pieces, modules make it possible for complicated settings to stay understandable. These can be used to share and reuse common settings. Reusing modules speeds up configuration writing and reduces mistakes. Practitioners of Terraform frequently post modules online. You may benefit from the enormous community that Terraform has created by utilizing their knowledge and expertise, significantly reducing the time you would otherwise spend generating and fixing configuration files.

  • Combined Logging

One of the finest aspects of IaC is integrated logging. By logging, developers may maintain and monitor their infrastructure, spot problems with deployed apps, and rapidly fix them.

Both CloudFormation and Terraform can do combined logging, although CloudFormation could offer a more smooth AWS ecosystem experience. The deployment and setup of logging resources within the AWS environment is made simpler by CloudFormation's strong integration with AWS services. While Terraform, as a multi-cloud platform, enables flexibility across many cloud providers, integrated logging with particular logging services necessitate further configuration and customization.

  • Safeguards And Rollbacks

Deletion protection is a feature that both Terraform and CloudFormation offer. By preventing you from deleting resources used as dependencies by other programs, this safety measure drastically lowers the likelihood of unintentionally damaging infrastructure.

Before removing or making changes to data storage, CloudFormation performs a backup. A manual upgrade may occasionally fail your CloudFormation infrastructure. When this occurs, CloudFormation will instantly roll back your infrastructure to the functioning condition it was in before.

Terraform does not support automatic rollbacks. You can manually return to an earlier configuration that worked or deploy fixes yourself. You may also avoid a rollback using the command terraform plan, which lists all impending modifications before execution. Terraform Plan may also be used to do a dry run of an update, verify the results to ensure all the changes are what you intended, and then commit your changes.

Conclusion: CloudFormation vs. Terraform

AWS aims to give its clients a rock-solid tool that always performs as intended with CloudFormation. The Terraform team agrees, but dependency management, a critical technology component, is not a principal focus. If your project has a multi-cloud architecture, Terraform can be useful. In this situation, Terraform scripts can synchronize resource management across the multiple cloud providers you are utilizing. However, you might still avoid Terraform's drawbacks by limiting its use to managing stacks already developed using the corresponding IaC tools tailored to the cloud.

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