What is OpenTofu? Terraform’s open-source alternative

Published on 30 Aug 2025 by Adam Lloyd-Jones

OpenTofu is an open-source fork of Terraform, emerging from a significant shift in HashiCorp’s licensing model for Terraform and other tools. This development has shaped its role within the larger context of Infrastructure as Code (IaC).

Infrastructure as Code (IaC) and Terraform’s Foundation: Infrastructure as Code is a practice where infrastructure is built and managed using automated tools that define servers, networking, and other elements in code-like files. This approach is a cornerstone of the DevOps movement, promoting culture, automation, measurement, and sharing (“CAMS”). Terraform, developed by HashiCorp, is a leading IaC tool that allows users to define their infrastructure declaratively in configuration files (HCL or JSON) and manage it across various cloud providers and virtualization platforms. It automates provisioning, reduces human errors, ensures consistency, and makes scaling effortless.

The Genesis of OpenTofu: In late 2023, HashiCorp announced a change to the license of Terraform, moving it from the open-source Mozilla Public License (MPL) to a custom proprietary license for versions 1.6 and beyond. This decision sparked widespread debate and strong reactions within the open-source community, with many feeling it was a “rug pull” given Terraform’s popularity largely stemmed from open-source contributions and third-party provider development.

In response to HashiCorp’s license change and lack of response to community concerns, a group of companies and developers initiated the OpenTofu project, forking Terraform into a new open-source endeavor. OpenTofu was accepted into the Linux Foundation and aims to join the Cloud Native Computing Foundation, ensuring its future is not solely dependent on a single company. Several companies, including Scalr, env0, Spacelift, and Harness, committed to supporting OpenTofu with dedicated developers. Tools like Terratest and Terragrunt, originally developed to fill gaps around Terraform, have also committed to supporting OpenTofu.

OpenTofu’s Characteristics and Compatibility - OpenTofu positions itself as a compatible alternative to HashiCorp Terraform:

Implications for IaC and DevOps - The emergence of OpenTofu offers choices for teams when integrating IaC into their DevOps pipelines.

In summary, OpenTofu represents the community’s commitment to maintaining an open-source option for IaC, providing a compatible and increasingly feature-rich alternative to HashiCorp Terraform within the dynamic DevOps landscape.

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Adam Lloyd-Jones

Adam Lloyd-Jones

Adam is a privacy-first SaaS builder, technical educator, and automation strategist. He leads modular infrastructure projects across AWS, Azure, and GCP, blending deep cloud expertise with ethical marketing and content strategy.

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