CloudFormation vs. Terraform: Which is Better for AWS-Only Deployments?

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I’ve been working on multiple AWS projects, using both AWS CloudFormation and Terraform for Infrastructure as Code (IaC). While both tools are powerful, I find myself leaning towards CloudFormation when working exclusively within AWS. Here’s why: Built-in Rollback Feature – If a deployment fails, CloudFormation automatically rolls back changes to the last stable state and provides detailed error messages. This helps in quick troubleshooting and reduces downtime.

Seamless AWS Integration – Since CloudFormation is AWS-native, it integrates deeply with AWS services, ensuring better security, compliance, and managed updates compared to Terraform in AWS-only environments.

YAML-Based Templates for Scalability – Writing infrastructure as YAML templates makes it easier to define, modify, and replicate complex environments across multiple AWS accounts and regions. This is especially useful for large-scale enterprise deployments.

On the other hand, Terraform is excellent for multi-cloud environments and provides more flexibility for managing infrastructure across different cloud providers. Discussion Points:  For AWS-only projects, which tool do you prefer: CloudFormation or Terraform?  Have you faced challenges with CloudFormation’s rollback feature or YAML templates?  How does Terraform’s flexibility compare to CloudFormation’s AWS-native advantages? I’d love to hear insights from the AWS community and get GenAI’s perspective on best practices!

3 Answers
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Accepted Answer

Your assessment of CloudFormation's advantages for AWS-only deployments is generally accurate. For projects exclusively within AWS, CloudFormation indeed offers several benefits that make it a strong choice.

CloudFormation's native integration with AWS services is a significant advantage. It provides immediate access to new AWS features and resources as they become available, which can be crucial for teams working solely within the AWS ecosystem. This tight integration also ensures better security and compliance with AWS best practices.

The automatic rollback feature you mentioned is indeed a valuable aspect of CloudFormation. If an error occurs during the deployment of a change set, CloudFormation automatically rolls back to the last known working state. This can help prevent extended downtime and simplify troubleshooting.

CloudFormation's change sets are another powerful feature. They allow you to preview changes to a running stack before deployment, helping you identify potential conflicts or unintended consequences. This can be particularly useful when making changes to critical resources like databases.

Regarding YAML templates, CloudFormation supports both YAML and JSON formats. While YAML is often preferred for its readability, it's worth noting that the choice between YAML and JSON is largely a matter of personal or team preference.

CloudFormation also offers some unique features like stack sets, which allow you to deploy resources across multiple AWS accounts and regions. This can be particularly useful for large-scale enterprise deployments, as you mentioned.

However, it's important to note that Terraform also has its strengths, even in AWS-only environments. Many developers find Terraform's syntax easier to learn and use. Terraform's state management can provide more flexibility in some scenarios, and its module system is powerful for code reuse.

The choice between CloudFormation and Terraform often comes down to specific project needs, team expertise, and organizational preferences. While CloudFormation has clear advantages for AWS-only deployments, both tools are capable of managing AWS infrastructure effectively.

Ultimately, the best tool is the one that best fits your team's needs and workflows. If you're working exclusively within AWS and finding success with CloudFormation, it's likely a good choice for your projects.
Sources
Terraform vs. CloudFormation – Which is more preferable for developers? | AWS re:Post
FAQ - AWS Prescriptive Guidance
AWS CloudFormation Features
Using AWS CloudFormation as an IaC tool - AWS Prescriptive Guidance

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answered 2 months ago
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EXPERT
reviewed 2 months ago
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I understatnd that with cloudformation, theres some things it cant perform that terraform can at which point you have to write a lambda function to fill these gaps.. I primarly use terraform for AWS

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EXPERT
answered 2 months ago
  • That's a great point, Gary!
    CloudFormation does have some limitations compared to Terraform, especially when it comes to resource coverage and flexibility. Using Lambda-backed custom resources is a common workaround to fill these gaps, but it can add complexity. Terraform's advantage lies in its broader multi-cloud support, modularity, and flexibility with providers. However, CloudFormation integrates natively with AWS services like IAM, SSM, and StackSets, providing a more seamless AWS experience.

    Out of curiosity, in your experience, what specific scenarios have you encountered where you needed to use Lambda with CloudFormation? Always interested in learning from real-world use cases!

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The GenAi's comparative discussion captured some good points!

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answered 2 months ago

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