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AWS CloudFormation vs. Terraform

The term "infrastructure as code" (IaC) has been popular recently, and for good reason. IaC, or software-defined infrastructure, is an IT setup where developers or operations teams continuously manage and provision the technological stack for an application via software, rather than manually configuring separate hardware devices and operating systems. As an essential part of DevOps, it attempts to boost productivity, quality, and timeliness in organizations. AWS CloudFormation or the open-source Terraform tool is frequently the first two options that come to mind when looking for tools to implement infrastructure as code on AWS. In order to help you decide which is best for your situation, we'll go over the differences between them.

Cloud Formation

As a service AWS provides, CloudFormation enables you to securely and consistently model and provision AWS and third-party application resources. With CloudFormation, AWS infrastructure modeling and development can be centralized, simplifying the management of dependencies among resources. This tool enables you to make changes in a defined and repeatable manner, facilitating the iterative refinement of your infrastructure. CloudFormation is dedicated to AWS and serves as a native tool designed to streamline infrastructure management.

CloudFormation allows development and operations teams to automate AWS’s infrastructure provision effortlessly. By handling the configuration in JSON and YAML formats called templates, CloudFormation allows users to achieve re-usability and scalability of infrastructure. These templates are pivotal for maintaining a consistent and repeatable infrastructure setup.
AWS services may be deployed in a segregated fashion using CloudFormation, which simplifies the process of configuring these services and connecting them to each other. This managed service allows you to design and provision AWS and third-party resources for your cloud environment. With this, testing may be iterated upon, and a rollback is possible (when configured properly).

CloudFormation also leverages CloudWatch to manage your AWS infrastructure in a controlled and predictable manner, allowing you to keep track of your infrastructure’s evolution. This integration ensures that you can monitor and refine your setup iteratively, ensuring optimal performance and reliability.

Advantages

  • Seamless Integration with AWS Services: CloudFormation integrates effortlessly with other AWS services such as IAM, Lambda, and AWS Config. This integration manages permissions, custom resource management, and compliance auditing tasks.
  • Infrastructure as Code (IaC): CloudFormation automates the creation, updating, and deletion of infrastructure resources. This ensures consistent deployment across different environments and allows infrastructure to be version-controlled along with application code, reducing manual intervention.
  • Simplified Resource Management: CloudFormation groups related resources into stacks, simplifying management and updating and deleting specific resources as a single unit. It also automatically manages resource dependencies.
  • Template-driven Infrastructure: CloudFormation defines infrastructure in a readable and modifiable format using JSON or YAML templates. Nested stacks further simplify complex architectures and allow for the reuse of common components.
  • Community and Support: With solid community support and member-contributed templates, users can expedite software development projects. Additionally, AWS provides extensive documentation and a support network.
  • Change Management: CloudFormation enables users to preview and validate changes before applying them and offers an automatic rollback feature if resource creation or updating fails.
  • Security: Leveraging AWS IAM, CloudFormation offers fine-grained access control, ensuring only authorized users can access and modify stacks. It also integrates with AWS Key Management Service (KMS) to encrypt sensitive data.

 

Disadvantages

  • Nested Stacks Complexity: Managing nested stacks can be more challenging and less intuitive than Terraform modules. Tools like CrossStacks references, the DependsOn attribute, or the GetAtt function can help manage template outputs.
  • Size Limit: There is a 51MB size limit on stacks, which may force users to break large infrastructures into multiple stacks and manually handle dependencies.
  • Modularization: CloudFormation’s modularization of code is a relatively new feature and not as mature as in Terraform.
  • AWS Confined: CloudFormation is confined to AWS, limiting its utility in a multi-cloud strategy.
  • Deployment Times: Complex stacks with multiple resources can have longer deployment times, potentially slowing development processes compared to Terraform.
  • State Management: CloudFormation does not manage state files and lacks remote state storage and state locking capabilities.

 

Terraform

Terraform is a free and open-source software program designed to assist users in establishing and deploying data center infrastructure. Notably cloud-independent, Terraform encapsulates APIs into expressive system settings that can be shared, modified, reviewed, and versioned collaboratively amongst team members. Additionally, Terraform’s capabilities extend to managing existing and popular solutions and on-premise applications, showcasing its versatility in handling diverse infrastructure environments. CloudFormation supports almost all AWS services and integrates well with serverless and all AWS services, such as AWS Lambda. This extensive support and seamless integration make CloudFormation a convenient choice for managing AWS resources.

Terraform is a powerful tool for provisioning, maintaining, and having useful versioning on the cloud infrastructure. It enables users to automate the setup of their infrastructure, ensuring consistency and reducing the risk of human error. Terraform can manage existing and popular solutions, including major cloud providers like AWS, Azure, and Google Cloud, as well as on-premise applications. This flexibility makes it an essential tool for teams looking to streamline their infrastructure processes across different environments.

However, it is crucial to consider the bigger picture when evaluating the long-term benefits of CloudFormation and Terraform. CloudFormation may be more convenient if you already use AWS tools and have no external dependencies. On the other hand, Terraform offers additional flexibility as a cloud-agnostic platform, seamlessly integrating with AWS services and other popular providers. This adaptability allows organizations to future-proof their infrastructure and easily transition between cloud environments.

 

Advantages

  • Modular Design: Terraform modules allow you to separate resources into dedicated and reusable templates, enhancing scalability and maintainability. This modularity makes it easy to manage complex infrastructure setups.
  • Version Control: With Terraform, you can use specific versions and different branches of the same module. This flexibility enables you to add new features and manage infrastructure updates more efficiently and easily.
  • Robust CLI: Terraform offers a robust CLI that allows you to monitor and manage the infrastructure’s status through simple commands. The CLI feature allows you to easily view the status, make updates, troubleshoot issues, and streamline infrastructure management.
  • Multi-cloud Integration: Terraform supports integration with multiple cloud providers, such as AWS, Google Cloud, Azure, and many more. This multi-cloud capability allows users to manage applications across various platforms, provides flexibility, and avoids vendor lock-in.
  • Simplified Orchestration: Terraform simplifies the management and orchestration of multi-tier infrastructure. By automating resource provisioning and configuration, it reduces manual effort and potential errors. While CloudFormation also has the same advantage regarding infra management and orchestration, the multi-cloud capability provides an additional layer of versatility.
  • Infrastructure as Code (IaC): Terraform takes the IaC approach, allowing teams to use version control systems to track and manage infrastructure changes. This approach promotes best practices for code reviews, testing, and deployment automation, which offers a consistent infrastructure management environment.
  • Extensive Community and Ecosystem: Terraform has a large and vibrant community that contributes to a rich ecosystem of plugins, modules, and extensions for users to leverage.
  • State Management: Terraform maintains a state file to track the current state of the infrastructure. This file helps detect configuration drifts while ensuring that changes are applied consistently and predictably.

 

Disadvantages

  • Compliance with New AWS Services: When AWS releases new services, Terraform providers often take some time to support them. This lag can affect organizations that want to use the latest AWS features immediately.
  • Steeper Learning Curve: Terraform’s syntax and HashiCorp Configuration Language can be more complex for new users than CloudFormation.
  • Security of State Files: As state files may contain sensitive information, improper handling of these files results in security risks. To mitigate this risk, use remote state storage with encryption and state locking. For instance, you can use AWS S3 with server-side encryption and state locking using DynamoDB to prevent concurrent changes.
  • State File Management: Besides security, losing state files is a concern because tracking resource changes is impossible if the Terraform state is ever lost. Remote backends not only secure state files but also keep them available across teams.

 

State Management

Both Terraform and CloudFormation require that you keep a record of all resources that are being managed.

Drift detection may be performed on the full supplied infrastructure using CloudFormation, and comprehensive replies are returned when anything has changed. A parameter can be modified without deleting and rebuilding a CloudFormation stack resource for some resources, whereas others are deemed immutable and must be rebuilt. CloudFormation will also check for dependencies before deleting a resource, and it will abort the operation if any are found . A remote location, such as the provisioning computer, is where Terraform keeps track of infrastructure status (for team use). It’s a special JSON format that tells Terraform where to find the resources it’s responsible for managing and how to set up those resources.

A managed AWS service, CloudFormation takes care of all this for you. CloudFormation will constantly monitor the state and configuration of the infrastructure it has supplied in order to ensure that it is doing so. A remote state option is available for Terraform, which saves the state data on a remote data store and may be used by all members of a team if desired. Amazon S3 is supported by Remote State, but you must set it up yourself.

Flexibility

 Flexibility is essential in the ever-changing world of infrastructure requirements. When it comes to meeting this demand, both CloudFormation and Terraform offer unique approaches.

Multiple resources can be contained in a single container in Terraform’s modules. Development teams benefit from the increased iteration speed that modules provide by abstracting their infrastructure into reusable and shareable software code. The “nested stacks” system is employed by CloudFormation. Using CloudFormation templates from within other CloudFormation templates. It is possible to further abstract these hierarchical stacks by creating StackSets. StackSets require special AWS CloudFormation permissions, which are not required for conventional CloudFormation.

CloudFormation, a popular infrastructure-as-code (IaC) tool provided by AWS, has its limitations when it comes to incorporating resources from non-AWS providers or specialized AWS services that are not built into CloudFormation. While it is possible to include third-party resources or integrate with a multi-cloud or hybrid environment, it often requires additional coding and design work. This can make it more challenging for customers to seamlessly provide or natively integrate such resources.

Terraform by comparison offers a more flexible and versatile solution for these scenarios. It allows customers to easily incorporate non-AWS resources or integrate with specialized AWS services, even in multi-cloud or hybrid environments. By utilizing Terraform, customers can streamline the process of deploying infrastructure, automating networking, services, and servers in AWS, and ensuring consistent application performance.

Designing

CloudFormation and Terraform use different approaches to handling parameters and settings. Terraform makes advantage of provider-specific data sources. Since it’s modular, it may be used in any Terraform configuration to fetch or compute data for use elsewhere. If you want to use an Elastic IP address to upgrade or provision infrastructure, you can do so with this feature. The maximum number of parameters in a CloudFormation template is 60. There must be a unique identifier for each argument in the template. CloudFormation parameters must be provided at stack runtime and must be of a supported type. The template itself must declare and refer to each parameter that is used. It is possible to use Dynamic References in CloudFormation to fetch parameters from the AWS Systems Manager parameter store if one is correctly configured.

Language

Terraform employs the HashiCorp Configuration Language (HCL), a language developed by HashiCorp, to configure its infrastructure. It was designed to find a compromise between user and machine-friendly languages while still being understandable by humans and is fully compatible with JSON. JSON and YAML are both supported by AWS CloudFormation, with the YAML version being slightly more user-friendly (as well as more compact). The template body is similarly limited to 51,000 bytes in CloudFormation. AWS recommends that developers use stacked stacks if they need to create a larger template.

Price

 Both of these tools are completely free of charge. Both of these programmes have sizable user communities that provide a wealth of information, guidance, and inspiration. The act of cloud creation is free. CloudFormation users pay only for the AWS service that is provisioned by the service. Free and open-source, Terraform is a useful tool. Terraform, on the other hand, offers an enterprise-level edition for a fee that includes more tools for teamwork and management.

AWS CloudFormation is provided for free, with users only paying for the resources they provision. Terraform is also free to use; however, it offers various support options based on the size of the organization using it.

Integration of Multiple Cloud Environments

Terraform emerges as the optimal choice for provisioning services across various cloud platforms. Unlike CloudFormation, which is limited to AWS, Terraform offers compatibility with a wide range of cloud providers, including AWS, GCP, Azure, and others. In a multi-cloud setup, relying on CloudFormation may not be the most effective approach. Specifically, if you are utilizing AWS services such as EC2, S3, and similar resources, CloudFormation remains a suitable solution.

It’s worth noting that Terraform has recently addressed its interoperability with AWS in the latest software release. This update brings Terraform to a level where it stands shoulder-to-shoulder with CloudFormation in effectively managing AWS cloud resources. This enhancement ensures that Terraform users can confidently leverage its capabilities for seamless integration and management of multi-cloud environments.

Conclusion and Closing Thoughts

CloudFormation and Terraform tools are extremely effective at managing cloud infrastructure. If you are currently on AWS and utilizing all AWS capabilities, CloudFormation may be more efficient for you. Being a native AWS service, it is tightly integrated with other AWS services, making it more convenient for AWS users. If you have no external tie-ins from third parties, CloudFormation can offer a seamless experience.

However, it is worth noting that Terraform offers a unique advantage in terms of flexibility, especially for users who require a cloud-independent platform. With Terraform, you can interface with AWS services and tap into other prominent cloud providers, broadening your range of options. This cloud-agnostic framework allows for more diverse solutions, ensuring you can tailor your infrastructure management to suit your specific requirements.

The decision between CloudFormation and Terraform hinges on your individual needs and preferences. While CloudFormation excels in its tight integration with AWS services and seamless user experience for AWS-centric operations, Terraform stands out for its versatility and ability to cater to a broader array of cloud platforms. Both tools effectively manage cloud infrastructure, offering distinct advantages depending on the context of your cloud environment.

The primary difference between Terraform and CloudFormation is that Terraform is a multi-cloud platform, while CloudFormation is specific to AWS. Terraform provides a common language to define and provision cloud infrastructure, allowing you to manage resources across different cloud providers. In contrast, CloudFormation is an AWS-specific solution that provides a standardized way to provision and manage AWS resources.

 

 

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