Terraform vs CloudFormation - Which Infrastructure as Code Tool is Cheaper

January 01, 2022

Terraform vs CloudFormation - Which Infrastructure as Code Tool is Cheaper

As more and more companies move their infrastructure to the cloud, it's important to have tools that help you manage your infrastructure efficiently and cost-effectively. In the world of infrastructure as code, Terraform and CloudFormation are two of the most popular tools for managing cloud infrastructure. But which one is cheaper? This blog post will compare the two tools and give you a better understanding of which one will help you save more money.

Terraform

Terraform is an infrastructure as code tool developed by HashiCorp. It allows you to define and manage your infrastructure as code across multiple cloud providers, including AWS, Azure, GCP, and more. Terraform uses a declarative language called HashiCorp Configuration Language (HCL), which makes it easy to understand and use.

Cost

When it comes to cost, Terraform is a cheaper option compared to CloudFormation. Terraform is an open-source tool, which means you only have to pay for the cloud resources you're using. There are no additional costs associated with using Terraform itself.

Terraform also has a feature called "state files," which store the current state of your infrastructure. You can store state files in a remote location such as S3 or a database, which is more cost-effective compared to CloudFormation, where you need to store these files in an S3 bucket and pay for storage costs.

CloudFormation

CloudFormation is an Amazon Web Services (AWS) tool that allows you to model and provision cloud resources using AWS CloudFormation templates. It uses AWS-native services and APIs to automate infrastructure provisioning and updates.

Cost

CloudFormation, unlike Terraform, is a paid tool. You pay for the resources used by CloudFormation itself, as well as any resources it provisions on your behalf.

CloudFormation stores its state information in Amazon S3, which can cause additional storage costs, especially if you're managing a large infrastructure.

Which one is Cheaper?

When it comes to cost, Terraform is the clear winner. Terraform is an open-source tool and has no additional costs associated with using it. In contrast, CloudFormation is a paid tool that requires users to cover additional costs.

Additionally, as mentioned above, Terraform's state files can be stored remotely at a lower cost compared to CloudFormation, which stores files in an S3 bucket.

Conclusion

Both Terraform and CloudFormation are great infrastructure as code tools with their unique strengths and weaknesses. If cost is a major consideration for your organization, Terraform is the better choice. Not only is it an open-source tool, but it's more cost-effective than CloudFormation in terms of the resources it uses and stores.

When deciding which tool to use, it's essential to consider other factors significant to your use case. In essence, we hope this comparison has provided you with enough information to make an informed decision that meets your organization's needs.

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