OpenTofu vs Terraform: Feature Comparison for DevOps Teams

Infrastructure as Code (IaC) has become a cornerstone of modern DevOps practices, and for years, Terraform has been the go-to tool. However, with recent changes in licensing and a growing demand for open-source alternatives, OpenTofu has emerged as a compelling fork of Terraform. At Kapstan, we help teams navigate the evolving IaC landscape—so this article compares OpenTofu vs Terraform through a practical lens, focusing on the features that matter most to DevOps teams.

Why This Comparison Matters

The Business Source License transfer by Terraform caused an open-source community backlash which led to OpenTofu development by the Linux Foundation together with additional collaborators. The development of Terraform and OpenTofu started from the same foundation yet they are currently separating in aspects that impact usability and extensibility and DevOps organization strategic planning.

The specific differences between these two tools provide vital knowledge for engineering leaders and platform teams to perform efficient decisions about scaling and adhering to regulations and obtaining community backing.

1. Licensing and Governance

Terraform : Now under a BSL, Terraform limits the use of its code in commercial tooling. While individual users and teams can still use it freely, the BSL restricts competitors from integrating or forking it.

OpenTofu : Released under the MPL-2.0 license, OpenTofu remains fully open-source and community-governed. This provides long-term transparency and ensures anyone can build upon or extend the tool.

Verdict : For organizations committed to open-source tooling and long-term flexibility, OpenTofu holds a clear advantage.

2. Community and Ecosystem

Terraform : backed by HashiCorp, Terraform has a large, mature ecosystem of providers and modules. It also benefits from long-standing community support.

OpenTofu : As a recent fork, OpenTofu inherits Terraform’s provider ecosystem but is actively working to establish its own community-driven roadmap. Momentum is building, with many contributors joining the effort to keep the tool truly open.

Verdict : Terraform currently has a broader ecosystem, but OpenTofu is rapidly catching up with a passionate open-source community behind it.

3. Feature Parity and Roadmap

OpenTofu provides complete compatibility with Terraform version 1.5 since it was the last version published under open-source terms when this article was written.

OpenTofu already shows signs of taking its development path in different directions. DevOps teams must expect that future Terraform features will develop tighter connections to HashiCorp commercial solutions.

OpenTofu uses community-based approaches to develop its platform through better governance measures as well as testing protocols and inclusive collaboration policies.

OpenTofu now stands as a different alternative to Terraform since it presents the selection between vendor-controlled software and an authentic open development structure.

4. Tooling and Integrations

Terraform : Supported by a suite of HashiCorp tools like Terraform Cloud and Sentinel for policy enforcement.

OpenTofu : compatible with existing Terraform plugins and tools but encourages third-party integrations that aren’t restricted by licensing.

Verdict : If you're invested in the HashiCorp ecosystem, Terraform may offer more out-of-the-box integrations. If you're looking for flexibility or want to build custom workflows, OpenTofu is a better fit.

5. Security and Stability

Both tools are mature and battle-tested. However :

Terraform updates and security patches are tightly controlled by HashiCorp.

OpenTofu benefits from open contributions, meaning security fixes can be submitted and peer-reviewed by the broader community.

Verdict : Teams that prioritize transparency in security practices may prefer OpenTofu.

How Kapstan Can Help

Kapstan serves companies by implementing infrastructure tools which merge with corporate values and technical objectives. Our DevOps consulting team creates infrastructure roadmap suitable solutions for clients who face the choice between migrating to OpenTofu or staying with Terraform or developing combined workflows.

We offer :

Migration assessments from Terraform to OpenTofu

Custom IaC module development

CI/CD pipeline integrations with IaC tools

Licensing and compliance consulting

Final Thoughts

The selection between OpenTofu and Terraform extends beyond pure technical evaluation because it creates a strategic direction for organizations. OpenTofu delivers open transparency as well as freedom alongside community alignment but Terraform presents an enterprise-ready solution which HashiCorp supports through their ecosystem.

The decision about future infrastructure development should center on whether to select OpenTofu or Terraform based on team needs regarding system governance and tool adaptability as well as organizational openness. Kapstan provides guidance to customers who require assistance in their option evaluation process.