Origins of Terraform

Developed by HashiCorp, Terraform was introduced as a solution to the growing need for automated, reproducible infrastructure deployments across diverse cloud providers and on-premises environments. Since its inception, Terraform has become a popular choice for cloud infrastructure automation.

How Terraform Works

Terraform operates on the principle of ‘Infrastructure as Code’, allowing users to describe their desired infrastructure state in configuration files. The primary steps in its operation include:

  • Writing Configuration: Users describe the desired state of infrastructure using HashiCorp Configuration Language (HCL).
  • Planning: Terraform analyzes current infrastructure state and calculates the differences compared to the desired configuration.
  • Applying: Terraform provisions or modifies resources to match the desired state.
  • Destroying: If needed, Terraform can also de-provision the defined infrastructure.

Advantages of Using Terraform

The adoption of Terraform offers numerous benefits:

  • Multi-cloud Compatibility: Terraform supports a wide range of cloud providers, allowing consistent infrastructure deployment practices across different clouds.
  • Modularity: Infrastructure can be organized into modules for better reusability and organization.
  • Version Control: Infrastructure changes can be tracked, reviewed, and reverted using standard version control systems.
  • Collaboration: Features like remote backends and state locking facilitate team collaboration on infrastructure provisioning.

Key Concepts in Terraform

Terraform introduces several core concepts:

  • Providers: Plugins that connect Terraform to cloud providers (e.g., AWS, Azure, Google Cloud).
  • Resources: Individual infrastructure components like virtual machines, security groups, or DNS entries.
  • State: A snapshot of infrastructure at a given time. Terraform uses this to determine changes required to reach the desired state.
  • Variables & Outputs: Allow parameterization and retrieval of information from Terraform configurations.


As cloud environments grow in complexity, tools like Terraform become essential for managing and automating infrastructure. By adopting Infrastructure as Code practices with Terraform, organizations can ensure consistent, reproducible, and scalable infrastructure deployments.

Shifting FinOps Left 👈

Put cloud costs in engineering workflows, and see the cost of upcoming code changes before resources are launched.