Cloud Computing

Terraform

Definition

Terraform is an open-source infrastructure as code software tool created by HashiCorp. It enables users to define and provision a datacenter infrastructure using a high-level configuration language known as HashiCorp Configuration Language (HCL).

Why It Matters

Terraform has become a standard for Infrastructure as Code because it is cloud-agnostic. It can be used to manage infrastructure on AWS, Azure, GCP, and many other platforms using a single, consistent workflow and language.

Contextual Example

An organization with a multicloud strategy uses Terraform to manage all of its cloud resources. This allows them to use the same tool and process whether they are deploying a VM on AWS or a database on Azure.

Common Misunderstandings

  • Terraform uses a declarative approach: you define the desired "end state" of your infrastructure, and Terraform figures out how to get there.
  • It is a popular alternative to cloud-provider-specific tools like AWS CloudFormation.

Related Terms

Last Updated: December 17, 2025