Terraform vs CloudFormation: Which AWS IaC Tool Should You Use? 🤔

This content originally appeared on DEV Community and was authored by Yash Sonawane

“Two tools. Same goal. Totally different vibes.”

If you’re diving into Infrastructure as Code (IaC) on AWS, chances are you’ve run into this question:

Should I use Terraform or CloudFormation?

It’s like choosing between Batman and Iron Man — both are powerful, but which one fits your mission?

In this post, we’ll break down Terraform and CloudFormation in plain English, using relatable metaphors, practical examples, and decision-ready insights.

Let’s settle this IaC showdown.

What is Infrastructure as Code (IaC)?

IaC lets you manage your cloud resources like software.

• No more clicking around the AWS Console
• Your infrastructure is version-controlled and repeatable
• You write code → Apply → Boom! Your infra is deployed

Think of IaC like using a recipe instead of cooking from memory. Reliable, shareable, and way less stressful.

Meet the Contenders

Terraform (by HashiCorp)

• Open-source, multi-cloud IaC tool
• Uses its own language: HCL (HashiCorp Configuration Language)
• Not limited to AWS (also supports Azure, GCP, etc.)

CloudFormation (by AWS)

• Native AWS IaC service
• Uses JSON or YAML
• Fully integrated into the AWS ecosystem

Side-by-Side Breakdown

Feature	Terraform	CloudFormation
Language	HCL (readable)	JSON/YAML
Multi-cloud?	Yes	AWS only
Modularity	Excellent with modules	Limited with nested stacks
State Management	External state file (local/S3/remote)	Managed by AWS
Change Preview	terraform plan	Change sets (less intuitive)
Community	Huge open-source ecosystem	Strong AWS-native support
Learning Curve	Beginner-friendly	Slightly verbose
Speed	Fast	Slower on large stacks
Third-Party Resources	Supported (via providers)	AWS only

Real-World Analogy

Terraform = Universal Remote

You can control any TV — AWS, Azure, GCP, even on-prem — with one tool.

CloudFormation = Official TV Remote

Built for AWS, works perfectly, but only on that TV.

Code Examples

Terraform Example (EC2 Instance)

provider "aws" {
  region = "us-east-1"
}

resource "aws_instance" "my_ec2" {
  ami           = "ami-0abcdef1234567890"
  instance_type = "t2.micro"
}

CloudFormation Example (EC2 Instance)

Resources:
  MyEC2Instance:
    Type: AWS::EC2::Instance
    Properties:
      ImageId: ami-0abcdef1234567890
      InstanceType: t2.micro

TL;DR: Terraform feels more like coding. CloudFormation feels more like configuration.

When to Choose What?

Choose Terraform if:

• You need multi-cloud deployments
• You want modular, DRY code
• You value a large community and plugin support
• You like terraform plan (preview before applying)

Choose CloudFormation if:

• You’re 100% on AWS and want native integration
• You prefer AWS-native tools (e.g., use AWS CDK with CFN)
• You like the idea of no external state files
• You want tight IAM integration and CloudWatch hooks

Pro Tips

• Use Terraform for orchestration, CloudFormation for fine-tuned AWS setup
• Consider AWS CDK if you love TypeScript/Python + CloudFormation
• Store Terraform state in S3 + DynamoDB for team-safe usage
• Use CI/CD pipelines to deploy IaC changes automatically

TL;DR

What’s YOUR IaC Tool of Choice?

Terraform vs. CloudFormation is a classic debate — and your use case is the real decider.

Drop your favorite tool and why you love it in the comments.
Smash if this cleared things up, and share it with a dev friend who’s lost in IaC land.

Let’s build cloud infra the smart way — one line of code at a time.

This content originally appeared on DEV Community and was authored by Yash Sonawane