I’m a Senior Software Engineer living in Berlin. Shifting limits based on quality and robustness. Cutting-edge software development. Defining durable and flexible interfaces. Creating rich and intuitive user experiences.

OpenTofu: A Terraform-Compatible, Fully Open-Source Alternative

Infrastructure-as-Code (IaC) is a cornerstone of modern cloud operations, with Terraform long serving as the industry standard for provisioning and managing cloud resources. OpenTofu has recently emerged as a Terraform-compatible alternative, offering a fully open-source option for organizations seeking more flexible licensing. This article explores OpenTofu’s workflow, compares it with Terraform, evaluates its suitability as a drop-in replacement, and highlights the licensing considerations behind its development.

Getting Started with OpenTofu

OpenTofu aims to provide a familiar workflow for users with Terraform experience. The setup and execution flow is remarkably similar, making it approachable for teams already using Terraform.

Installation

OpenTofu and common cloud provider CLIs can be installed together via Homebrew:

brew install opentofu awscli azure-cli gcloud-cli

For VSCode users, a dedicated OpenTofu plugin is available to enhance syntax highlighting, autocompletion, and error detection.

Tip:Speed up command execution by creating a shell alias in your configuration file (~/.bashrc, ~/.zshrc, etc.):

alias t='tofu'
# Or, if you use Terraform:
# alias t='terraform'

This allows you to run commands like t init or t apply instead of typing the full command.

Workflow

OpenTofu’s workflow commands closely mirror Terraform, making the transition seamless for existing users. The main commands include:

  • tofu init — Initializes a project and downloads required providers.
  • tofu plan — Generates an execution plan to preview changes before applying.
  • tofu apply — Applies the plan and provisions or updates resources.
  • tofu destroy — Destroys resources defined in the configuration.
  • tofu state — Manages and inspects the current state of resources.
  • tofu refresh — Updates the state to match real-world infrastructure.
  • tofu taint — Marks a resource for recreation on the next apply.

As these commands closely match Terraform’s syntax, most existing Terraform workflows, scripts, and modules work with minimal adaptation.

Example Repository: opentofu-first-steps

For hands-on examples and a practical starting point, you can explore my public repository opentofu-first-steps. This repository provides ready-to-use OpenTofu scripts for creating cloud resources across AWS, Azure, and GCP. It is designed for learning and experimentation, demonstrating workflows like project initialization, planning, applying changes, inspecting state, and destroying resources. The repository includes detailed instructions, example .tfvars file contents, and guidance for selecting free-tier or low-cost instance types, making it an excellent resource for beginners who want to practice multi-cloud infrastructure provisioning with OpenTofu. As noted in the repository, these scripts are not intended for production use, so users should review and understand the code before running it to avoid unintended costs or security risks.

GitHub repository: opentofu-first-steps

OpenTofu vs. Terraform: Features and Workflow

OpenTofu mirrors Terraform’s workflow and syntax, making it immediately familiar to Terraform users. Both tools use HCL configuration files, support modules, and manage state through local or remote backends. OpenTofu commands—tofu init, tofu plan, tofu apply, and tofu destroy—correspond almost directly to Terraform’s commands, allowing users to transition quickly with minimal learning curve.

However, there are differences. Terraform has a mature ecosystem with extensive provider support, frequent updates, and a robust community. OpenTofu, being newer, relies on Terraform-compatible providers but may lag in supporting the latest features. Similarly, while Terraform’s state management and enterprise integrations are battle-tested, OpenTofu, though functionally similar, has less production experience. Its community and learning resources are still growing, whereas Terraform benefits from decades of documentation, tutorials, and enterprise adoption.

Drop-In Replacement Considerations

OpenTofu can act as a drop-in replacement for Terraform in many scenarios, especially for learning, experimentation, or small-to-medium deployments. Its HCL syntax, module system, and CLI workflow are highly compatible, allowing existing Terraform configurations to be used with minimal modifications.

For production environments—especially large or complex setups—Terraform’s maturity, extensive provider support, and established ecosystem provide greater reliability. Some advanced Terraform features, such as custom provisioners or enterprise integrations, may not yet be fully supported in OpenTofu. Nonetheless, for teams seeking a fully open-source, Terraform-compatible tool, OpenTofu presents a practical option. Careful evaluation of organizational requirements is recommended before replacing Terraform in mission-critical environments.

Licensing Considerations

A key motivation for OpenTofu’s development is Terraform’s license change. Terraform originally used the Mozilla Public License 2.0 (MPL 2.0), a permissive open-source license allowing unrestricted commercial use. In 2023, HashiCorp switched Terraform to the Business Source License (BSL), restricting certain commercial uses, particularly in multi-tenant SaaS or managed service scenarios. While the source remains available, organizations deploying Terraform as part of a hosted offering now need to negotiate licensing with HashiCorp.

OpenTofu addresses this limitation by remaining fully open-source under a permissive license, enabling unrestricted use, modification, and redistribution. Organizations can adopt OpenTofu for learning, experimentation, or commercial deployments without concern for licensing restrictions, while maintaining compatibility with existing Terraform configurations and providers.

Conclusion

OpenTofu is a promising Terraform-compatible alternative that preserves the familiar workflow and syntax of Terraform while providing a fully open-source license. It is well-suited for learning, experimentation, and smaller-scale production environments. For complex or mission-critical deployments, Terraform’s maturity, broad provider support, and extensive community resources remain valuable advantages. Ultimately, OpenTofu offers a legally unrestricted, community-driven path forward for teams seeking an open-source IaC solution that aligns closely with Terraform’s ecosystem.