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The shift in concept by Terraform developer HashiCorp from an open-source solution to a commercial license model presents many companies with an important decision: Should they make the switch to a business license? Or is it wiser to opt for a more cost-effective open-source alternative?  

MHP is here to guide you through this decision-making process, helping you find a solution that meets your company's specific needs and resources. In this blog article, we will explore the benefits of the Infrastructure as Code tool Terraform, the opportunities and challenges of its new business license, and evaluate the open-source alternative OpenTofu. Our goal is to provide you with a comprehensive overview of your options to ensure that you can continue to execute your projects efficiently and successfully. 

Successes with the Use of Infrastructure as Code like Terraform

Infrastructure as Code (IaC) tools are software solutions designed to define, manage, and automate IT infrastructures through code. Using these tools allows your company to provision and manage resources more efficiently and consistently. A prominent example of such a tool is Terraform, developed by HashiCorp, which has established itself as a leading IaC tool and offers numerous advantages: 

Automation 

Infrastructure as Code tools like Terraform allow developers to significantly speed up resource deployment. Automated processes enable them to set up new infrastructures in a very short time without the need for manual intervention, which minimizes the risk of human error. Additionally, organizations can scale resources efficiently according to demand, which proves particularly advantageous in dynamic environments. 

Consistency 

These software tools create all resources according to uniform specifications, which increases consistency in your IT infrastructure and reduces the likelihood of deviations and errors. Additionally, once-created configurations can be reused, making it easy to repeat processes. 

Versioning 

With their versioning capability, Infrastructure as Code tools offer the following significant advantages: 

  • Traceable Changes: Every change to the infrastructure can be tracked, enhancing transparency. 
  • Easy Rollbacks: Changes can be easily reverted if needed, restoring previous stable states.  
  • Enhanced Team Collaboration: Developers can work together on infrastructure and document changes transparently. 

Efficiency 

Automated processes save you significant time in managing your infrastructure and greatly reduce administrative effort. At the same time, optimal resource utilization lowers your costs, resulting in reduced operating expenses and increased efficiency. 

Flexibility  

The Infrastructure as Code tool Terraform supports various cloud providers such as AWS, Azure, and Google Cloud, enabling broad application. It can be flexibly adapted to different IT environments and facilitates the integration of new technologies and services into the existing infrastructure, regardless of the data types used. 

Transparency  

All infrastructure code is documented and viewable at any time, which facilitates traceability, allows for quicker error identification, and significantly increases process transparency. Additionally, you can more easily review and implement security policies using the tool, further enhancing infrastructure security. 

Opportunities and Challenges of Switching to the Terraform Business License

Switching from the open-source version of Terraform to the commercial Business License presents companies with a range of challenges but also unlocks new opportunities. The Business License offers additional features, enhanced support, and improved security benefits compared to the open-source version, but it also comes with higher costs. 

Opportunities of the License Change 

Switching to the Terraform License can bring numerous benefits to your company: 

  • Extended Support: With the Business License, you receive round-the-clock professional support, accelerating problem resolution. 
  • Enhanced Security: The Terraform Business License provides advanced security features, regular security updates, and support for compliance through predefined compliance reports. 
  • Improved Scalability: With advanced service management, companies can deploy infrastructure more efficiently and assign roles, significantly enhancing infrastructure scalability. 
  • Better Integration: The Business License enables seamless integration with other enterprise solutions, as well as regular and smooth updates and upgrades of infrastructure components. 
  • Guaranteed Availability: Service Level Agreements (SLAs) ensure higher reliability and availability from providers, maximizing infrastructure uptime.  
  • Professional Services: The commercial license provides access to expert consultations, training, and workshops to help you fully leverage Terraform's potential. 
  • Customizable Solutions: The Business License can be tailored to your company's specific needs through bespoke solutions and customizable modules. 

Challenges of the License Change 

While switching to the Terraform Business License presents many opportunities for your company, you should also carefully consider the accompanying challenges: 

  • Cost: Ongoing license fees increase the overall cost of your IT infrastructure, which may require budget adjustments. 
  • Implementation Effort: Transitioning your systems to the Terraform Business License requires time and resources, including training your staff to become familiar with the new features and processes. 
  • Complexity: Integrating the Business License into your existing systems and adjusting your current workflows can be complex and time-consuming. 
  • Vendor Lock-In: Choosing the commercial Terraform version ties your company to the provider long-term, making it more difficult to switch to alternative solutions. 
  • Team Acceptance: Introducing new systems can often lead to resistance and feelings of overwhelm. Effective change management, such as comprehensive training, is crucial to help employees adapt to new features and processes smoothly. 
  • Technical Issues: Unexpected technical difficulties and potential downtime during the transition can disrupt operations. Therefore, careful planning and execution are essential. 

Deciding whether to switch to the Terraform Business License essentially involves weighing the additional features and enhanced support against the higher costs and implementation effort. However, with careful planning and support from our MHP experts, you can successfully manage the license transition to maximize long-term benefits for your company. 

You also have the possibility to continue using the previous open-source versions of Terraform, that is, all versions prior to Terraform 1.5.x. However, you should be aware that you will not have access to new features and updates, which could pose a long-term security risk. 

OpenTofu: Open Source Alternative to Terraform

If a commercial license like the Terraform Business License is not suitable for your company, OpenTofu presents an interesting open-source alternative. This software tool was developed from the open-source code of HashiCorp's Terraform 1.6 and therefore offers nearly identical syntax, as well as the same providers and libraries. This means that the migration effort is relatively low compared to other software solutions. 

Additionally, OpenTofu offers comparable infrastructure components and supports multiple cloud providers as well as other services such as Azure, GitLab, Databricks, and MongoDB. It covers a large portion of the functionalities provided by Terraform. However, unlike the Business License, which guarantees professional 24/7 support, OpenTofu relies on community support. There is no professional support guarantee, so you would depend on community assistance. 

Furthermore, OpenTofu has basic security features and receives regular updates from the community. However, it lacks the advanced security features provided by the Terraform Business License. In terms of compliance, the open-source alternative offers limited, predefined compliance reports and cannot guarantee audits. Companies that rely on comprehensive compliance reports might encounter limitations. 

Small to medium-sized infrastructures can be effectively scaled with OpenTofu. However, for large enterprises, scalability might be limited. Additionally, there are no Service Level Agreements (SLAs), meaning that the availability and reliability of the modules heavily depend on community contributions. 

Integration of OpenTofu with other tools is possible but may require more manual adjustments compared to the Terraform version with a Business License developed by HashiCorp. However, the open-source nature of the tool provides high flexibility and customizability, allowing companies to tailor it precisely to their specific needs. This, however, could potentially involve higher development effort for the modules. 

The major advantage of OpenTofu is that the infrastructure components are available for free and do not incur ongoing license fees. This makes it a cost-effective and flexible alternative to the Terraform version with a Business License. However, the decision requires careful consideration of the pros and cons, particularly regarding support, security, and scalability, as OpenTofu does not offer a professional business solution.  

MHP: A Strong Partner with Extensive Expertise

Switching from the open-source version of Terraform to the Business License is a significant decision that requires careful consideration and expertise. This is where MHP comes in: With our extensive expertise and years of project experience, we are well-equipped to support you through this process and provide tailored solutions to ensure the long-term success of your projects. 

Future-Proof Solutions 

MHP ensures that you receive future-proof solutions for your infrastructure automation by proactively analyzing new licensing models and alternative tools. This ensures that you always utilize the most efficient and innovative solutions. Our approaches are designed to meet the constantly evolving market demands, keeping your infrastructure up-to-date. 

Flexibility  

Our experts provide comprehensive advice on choosing between different options, whether it's the Terraform Business License or open-source alternatives. This ensures you find the solution that best fits your needs.  

Cost Optimization 

MHP evaluates and assesses open-source alternatives to offer you a cost-effective solution tailored to your needs. Through our thorough analysis and advisory services, you will receive a solution that is not only cost-effective but also powerful and reliable. 

Conclusion: Make the Right Decision for Your Infrastructure Automation with MHP's Support

If you decide to transition your systems to the Terraform Business License, you'll benefit from enhanced support services, increased security, improved scalability, and guaranteed availability. However, these advantages come with higher costs and implementation effort. The open-source solution OpenTofu can serve as a cost-effective alternative with comparable functionality but lacks professional support guarantees and advanced security features. 

To make the right decision for your company, you should consider your specific needs and resources. MHP is here to provide advisory support throughout this process. Leverage our expertise and experience to make an informed choice and ensure your infrastructure projects are future-proof and efficient. Let us work together to develop the best strategy for your infrastructure automation. 

FAQ

What is the difference between Infrastructure as a Service (IaaS) and Infrastructure as Code (IaC)?

Infrastructure as a Service (IaaS) is a cloud computing model that provides virtual computing resources such as servers, storage, and networks over the internet. Infrastructure as Code (IaC), on the other hand, refers to the process of defining and automating IT infrastructure through code, which improves efficiency and consistency in deploying and managing resources. While IaaS provides the physical infrastructure, IaC enables automated management and configuration of that infrastructure through code-based approaches.   

How does Terraform support users in designing Infrastructure as Code (IaC)?

Terraform supports users in designing Infrastructure as Code (IaC) by significantly accelerating the deployment of IT resources through automation and minimizing manual errors. It allows for consistent configurations and repeatable processes, enhancing the consistency and transparency of infrastructure. Additionally, Terraform offers versioning features that make changes traceable, enable easy rollbacks, and improve team collaboration. 

Which cloud providers support Terraform?

Terraform supports a variety of cloud providers such as AWS, Azure, and Google Cloud, as well as other services like GitLab, Databricks, and MongoDB. This flexibility makes Terraform a powerful tool for infrastructure automation across different IT environments. 

What are Terraform providers?

Terraform providers are plugins that allow Terraform to interact with various cloud services and infrastructure platforms. They extend Terraform's functionality by enabling the deployment and management of resources on AWS, Azure, Google Cloud, and many other platforms. This significantly enhances the flexibility and scalability of infrastructure automation. 

Can I integrate existing infrastructure into Terraform?

Yes, you can integrate existing infrastructure into Terraform. With Terraform, you can import existing resources and include them in your Terraform configuration code, allowing for seamless management and automation. This greatly simplifies the consolidation and management of your infrastructure, making your IT processes more efficient and consistent. 

Is Terraform a DevOps tool?

Yes, Terraform is a DevOps tool. It allows you to define, manage, and automate IT infrastructures through code, making your DevOps processes significantly more consistent and efficient. With its support for multiple cloud providers and its ability to automate the deployment and modification of infrastructure, Terraform fits perfectly into the DevOps approach. 

About our author

A "better tomorrow" is not possible without it:

  1. Changing things that you can actually change,
  2. Clear and open communication within the team.
  3. Time management through automation

My heart beats faster for...:

Successful automation because it makes work easier and more efficient and makes me smile

Alem Kusur

Consultant

About our author

A "better tomorrow" is not possible without it:

  1. Teamwork & cohesion
  2. Innovation & courage to take risks
  3. Growth mindset & recovery phases

My heart beats faster for...:

The development of creative and efficient solutions that improve and inspire life both professionally and privately.

Karolina Franz

Consultant

About our author

A "better tomorrow" is not possible without it:

  1. Learning from successes and failures to make informed decisions for the future.
  2. Building strong networks and partnerships to overcome challenges together and develop innovative solutions
  3. Ensuring clear and open communication to ensure a common understanding and effective collaboration.

My heart beats faster for...:

Developing and implementing sustainable and effective solutions

Tatjana Lutz

Consultant