Infrastructure as Code (IaC) has become a critical component of modern DevOps practices. Among the tools leading the pack, Terraform has long stood out as the industry standard. However, with HashiCorp’s license change in 2023, a significant shift occurred in the IaC landscape. This gave rise to OpenTofu, a community-driven fork of Terraform. For teams deciding between these two, the differences go beyond branding—they reflect a fundamental divergence in philosophy, licensing, and future development paths.
So how do these tools compare, and which one should your team adopt?
The Origin Story of OpenTofu
Terraform, developed by HashiCorp, is an open-source IaC tool that allows users to define cloud infrastructure using a declarative configuration language. For years, it thrived under the Mozilla Public License 2.0 (MPL 2.0), fostering a strong and vibrant community.
But in August 2023, HashiCorp announced a move to the Business Source License (BSL), restricting how its tools could be used commercially. The open-source community reacted quickly. A coalition of developers, backed by the Linux Foundation, launched OpenTofu—a hard fork of Terraform’s last MPL-licensed version. The goal was to keep the spirit of open-source infrastructure automation alive and accessible to all.
Key Differences: Governance and Licensing
One of the primary distinctions lies in governance. Terraform is now governed solely by HashiCorp, with contributions vetted by the company. In contrast, OpenTofu is governed by a neutral body under the Linux Foundation, making it more community-centric and open to outside contributions.
Licensing is another major fork in the road. Terraform’s BSL restricts certain types of use, especially by cloud providers building competing services. OpenTofu, on the other hand, remains under MPL 2.0, giving users full freedom to use, modify, and distribute the software—even commercially.
This difference in licensing has real implications. Businesses concerned about vendor lock-in or compliance limitations may lean toward OpenTofu for its clarity and openness.
Compatibility and Migration
A natural question is: can you switch from Terraform to OpenTofu without breaking everything?
Fortunately, opentofu vs terraform isn’t about incompatible ecosystems—at least not yet. OpenTofu started as a line-by-line fork of Terraform 1.5.5, so its core functionality, CLI commands, and configuration syntax are identical. Most Terraform modules, providers, and state files work seamlessly with OpenTofu.
However, the two tools may diverge over time as their respective communities develop new features. OpenTofu’s maintainers have signaled plans for faster iteration and features that may never make it into Terraform, such as improved testing frameworks and richer language constructs.
At Kapstan, we’ve already assisted several clients in evaluating and migrating their infrastructure from Terraform to OpenTofu. In scenarios where long-term open-source sustainability and freedom from licensing constraints are top priorities, OpenTofu offers a strong case.
Ecosystem and Community Momentum
Terraform still enjoys a vast ecosystem of modules and provider plugins, supported by a large number of DevOps teams globally. But OpenTofu isn’t far behind. The OpenTofu community has been growing rapidly, attracting contributors from major cloud platforms, independent developers, and enterprises alike.
The momentum is clearly visible on GitHub, mailing lists, and community forums. The Linux Foundation’s stewardship adds a level of trust and organizational backing that’s rare for new forks. This gives OpenTofu a serious chance to become more than just a stop-gap—it could evolve into a preferred tool for IaC in open environments.
Which One Should You Choose?
If you are already using Terraform and not affected by BSL constraints, you might continue using it with minimal disruption. But if your organization values open governance, long-term compatibility, and complete freedom over how infrastructure tooling is used, OpenTofu is a compelling alternative.
Here are a few considerations:
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Compliance sensitivity: Choose OpenTofu if licensing is a concern.
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Community involvement: Opt for OpenTofu if you want to contribute or build extensions.
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Stability and enterprise support: Terraform, backed by HashiCorp, may offer more mature enterprise integrations (for now).
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Future-proofing: OpenTofu may innovate faster in the open-source space.
Final Thoughts
The split between OpenTofu and Terraform marks a pivotal moment in the evolution of Infrastructure as Code. It’s not just about tools—it’s about values: openness, transparency, and community-driven innovation. As the landscape evolves, organizations must weigh their priorities carefully.
At Kapstan, we stay at the forefront of cloud-native tooling and help businesses navigate these decisions with confidence. Whether you’re thinking of migrating to OpenTofu or optimizing your existing Terraform setup, our team provides hands-on expertise to align your infrastructure strategy with your business goals.
