Infrastructure as Code (IaC) has become the foundation of modern DevOps and cloud-native operations. For years, Terraform led this space with its powerful declarative approach, provider ecosystem, and cloud-agnostic capabilities. But recent licensing changes sparked a community shift, giving rise to an open-source alternative: OpenTofu.
So what’s the difference between OpenTofu vs Terraform? Why did this fork happen, and what does it mean for engineering teams?
Let’s break it down and explore how platform engineering solutions like Kapstan are helping teams navigate the transition with confidence.
Why the Fork? Understanding the Origins of OpenTofu
In August 2023, HashiCorp—the company behind Terraform—announced a license change from the permissive open-source MPL to a Business Source License (BSL). This decision restricted certain commercial uses of Terraform, causing concerns across the DevOps and open-source communities.
In response, the Linux Foundation and community leaders created OpenTofu, a fully open-source fork of Terraform. The goal: preserve the freedom to innovate and collaborate on infrastructure tooling without licensing constraints.
OpenTofu: A Drop-In Replacement for Terraform (For Now)
In its current form, OpenTofu is fully compatible with Terraform 1.5. It supports the same HCL syntax, provider ecosystem, and CLI workflows—meaning most teams can switch with minimal effort. But the long-term vision is to innovate independently, introducing features and improvements driven by the community.
Key benefits of OpenTofu:
Truly open source under the MPL
Maintained by the Linux Foundation and community contributors
Backed by major cloud and infrastructure providers
Aims to remain backward-compatible while evolving faster
Terraform: Still Powerful, But Now Restricted
Terraform remains a mature, powerful tool with a rich ecosystem and years of adoption. For many teams, especially those already locked into the HashiCorp stack, it still works well. However, under the new license, usage is restricted for commercial distribution and tooling that competes with HashiCorp’s offerings.
Potential downsides:
Uncertainty about long-term access and features
Vendor lock-in for some use cases
Limited community-driven innovation
If your business depends on building internal tools or managing large-scale IaC workflows across teams, these restrictions may impact your roadmap.
OpenTofu vs Terraform: Key Differences
Here’s a quick comparison of the two tools:
| Feature | OpenTofu | Terraform |
|---|---|---|
| License | MPL (fully open-source) | BSL (commercial restrictions) |
| Compatibility | Terraform 1.5 compatible | Native support |
| Community Governance | Linux Foundation + open source | Controlled by HashiCorp |
| Innovation Velocity | Community-driven roadmap | Controlled feature releases |
| Long-Term Ecosystem Vision | Open, modular, collaborative | Centralized and commercial |
How Kapstan Supports Both OpenTofu and Terraform Workflows
At Kapstan, we recognize that engineering teams are at different stages of their infrastructure journey. That’s why our platform is designed to support both Terraform and OpenTofu—giving you the flexibility to choose what fits your governance model, licensing preferences, and long-term strategy.
With Kapstan, you can:
Integrate IaC workflows into CI/CD pipelines seamlessly
Visualize resource drift and plan changes in real-time
Standardize module usage and enforce policies across teams
Migrate from Terraform to OpenTofu without downtime
Whether you're staying with Terraform or planning a move to OpenTofu, Kapstan helps you automate and scale infrastructure with full visibility and compliance.
Final Thoughts
The OpenTofu vs Terraform debate isn’t just about tooling—it’s about freedom, control, and community. Terraform has long been a pillar in the DevOps world, but OpenTofu is quickly establishing itself as a true alternative for teams that prioritize open governance and innovation.
At Kapstan, we’re committed to supporting whatever path you choose—because infrastructure as code should empower, not limit.