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Key difference between Terraform & CloudFormation

Choosing the right infrastructure-as-code tool can be a strategic decision for any DevOps team. In this post, we compare two of the most popular tools: Terraform by HashiCorp and CloudFormation by AWS.

You’ll learn that while CloudFormation is deeply integrated with AWS and offers native support for most AWS services, Terraform provides a multi-cloudprovider-agnostic approach. Terraform uses its own language (HCL) and offers features like reusable modules, a larger ecosystem of community plugins, and simpler cross-cloud deployments.

We dive into areas like:

  • Syntax and configuration structure
  • State management and drift detection
  • Modularity and reusability
  • Error handling and rollback support
  • Ecosystem and toolchain compatibility

This post helps you decide which tool is right for your project, whether you’re all-in on AWS or working across multiple cloud platforms.