Terraform vs OpenTofu – Key Differences

 

In today’s rapidly evolving cloud infrastructure landscape, Infrastructure as Code (IaC) tools play a crucial role in automating and managing cloud environments efficiently. Two prominent players in this space are Terraform and OpenTofu. Both tools offer powerful capabilities for provisioning infrastructure, but they differ significantly in licensing, governance, and community involvement.

To help you navigate these differences quickly, we designed a clean, modern infographic comparing Terraform and OpenTofu side-by-side. Using purple tones for Terraform and green tones for OpenTofu, the infographic highlights five key areas that distinguish the two tools.

---

Terraform Online courses and Retail and Corporate training by Eduarn

 

1. License

One of the most fundamental differences lies in the licensing model.

• Terraform is released under the Business Source License (BSL), which restricts commercial use of certain versions after a set period. This hybrid license limits how the community can freely use and contribute to the tool.

• OpenTofu, on the other hand, uses the Mozilla Public License (MPL-2.0), a fully open-source license that encourages broader collaboration and sharing while protecting contributors’ rights. This means OpenTofu’s codebase is more permissively accessible to everyone.

2. Ownership and Maintenance

Ownership impacts how decisions are made and how responsive the project is to its user base.

• Terraform is maintained primarily by HashiCorp, a single company that controls the roadmap, releases, and contributions. This centralized control can result in a focused vision but limits community influence.

• OpenTofu is maintained by the Linux Foundation and a vibrant community of contributors, ensuring a more democratic and transparent approach to development.

3. Open Source Status

Open-source projects foster innovation by allowing users to inspect, modify, and enhance the code.

• Terraform is partially open source, with some core features kept proprietary. This means users may not have full visibility or control over the entire tool.

• OpenTofu is fully open source, providing complete access to its source code and welcoming modifications from anyone interested in improving the platform.

4. Governance

Governance models shape the direction and sustainability of a project.

• Terraform operates under a company-controlled governance model, where HashiCorp makes key decisions. This can streamline development but may restrict external input.

• OpenTofu embraces a community-driven governance structure, empowering contributors from around the world to have a say in the tool’s future.

5. Future Development and Contributions

Finally, how contributions are handled signals how open and innovative a project can be.

• Terraform uses a closed contribution model, meaning most changes must come from internal teams, limiting external contributions.

• OpenTofu welcomes open contributions, encouraging a diverse range of developers to submit improvements, bug fixes, and new features.

---

Why This Matters

For organizations deciding between these two powerful tools, understanding these distinctions is essential. Terraform’s business-backed model offers stability and a defined roadmap but with limited openness. OpenTofu, supported by the Linux Foundation and an open community, promotes transparency, inclusivity, and potentially faster innovation.

Our infographic clearly presents these differences side-by-side, helping cloud architects, DevOps engineers, and IT leaders make informed decisions that best fit their organizational needs.

---

Summary

Aspect	Terraform	OpenTofu
License	Business Source License (BSL)	Mozilla Public License (MPL-2.0)
Ownership	Maintained by HashiCorp	Maintained by Linux Foundation & Community
Open Source	Partially open	Fully open source
Governance	Company-controlled	Community-driven
Future Dev.	Closed contribution model	Open contributions welcome