CloudFormation vs Terraform awareness in AWS - Visual Side-by-Side Comparison

Process Flow - CloudFormation vs Terraform awareness

Write Infrastructure Code

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CloudFormation

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Upload Template

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Create/Update Stack

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AWS Manages State

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Resources Created

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Infrastructure Ready

Shows the choice between CloudFormation and Terraform, their deployment steps, and how state is managed.

Execution Sample

AWS

1. Write CloudFormation YAML template
2. Upload template to AWS
3. AWS creates stack and resources

Deploy infrastructure using CloudFormation by uploading a template and letting AWS manage the deployment.

Process Table

Step	Action	Tool	State Management	Result
1	Write infrastructure code	Both	Local file	Code ready
2	Choose tool	Decision	N/A	Select CloudFormation or Terraform
3	Upload template	CloudFormation	AWS manages	Template uploaded
4	Init and plan	Terraform	User manages	Plan created
5	Create or update stack	CloudFormation	AWS manages	Stack created/updated
6	Apply changes	Terraform	User manages	Resources created
7	Manage state	CloudFormation	AWS manages	State stored in AWS
8	Manage state	Terraform	User manages	State stored locally or remote
9	Infrastructure ready	Both	N/A	Resources available
10	Exit	Both	N/A	Deployment complete

💡 Deployment completes after resources are created and state is managed.

Status Tracker

Variable	Start	After Step 3	After Step 5	After Step 6	Final
Infrastructure Code	Not written	Written	Written	Written	Written
Template Uploaded	No	Yes	Yes	Yes	Yes
Stack Created	No	No	Yes	Yes	Yes
Plan Created	No	No	No	Yes	Yes
Resources Created	No	No	Yes	Yes	Yes
State Location	None	None	AWS	User	User or AWS

Key Moments - 3 Insights

Why does CloudFormation manage state automatically but Terraform requires user management?

CloudFormation stores state inside AWS as part of the stack, so users don't handle it directly (see steps 7 and 8 in execution_table). Terraform stores state files locally or remotely, so users must manage them.

What happens after uploading a CloudFormation template?

AWS creates or updates the stack automatically, managing resources and state (step 5 and 7 in execution_table). This differs from Terraform which requires a separate apply step.

Why is there a planning step in Terraform but not in CloudFormation?

Terraform's plan step (step 4) shows changes before applying, giving users control. CloudFormation applies changes directly after upload, so no separate plan step exists.

Visual Quiz - 3 Questions

Look at the execution_table, at which step does Terraform create resources?

A Step 3

B Step 6

C Step 5

D Step 7

💡 Hint

Check the 'Action' and 'Tool' columns for Terraform resource creation.

According to variable_tracker, where is the state stored after step 7 for CloudFormation?

A Locally on user machine

B Not stored

C In AWS managed service

D In Terraform Cloud

💡 Hint

Look at 'State Location' variable after step 7.

If you skip the plan step in Terraform, what changes in the execution_table?

A Step 4 would be missing

B Step 3 would be missing

C Step 6 would be missing

D Step 5 would be missing

💡 Hint

Plan step is step 4 in execution_table.

Concept Snapshot

CloudFormation and Terraform both deploy infrastructure as code.
CloudFormation uses AWS templates and manages state automatically.
Terraform uses its own language, requires init, plan, and apply steps.
Terraform state is managed by the user locally or remotely.
CloudFormation stacks are managed fully by AWS.
Choose based on control needs and environment.

Full Transcript

This visual execution compares CloudFormation and Terraform deployment flows. Both start by writing infrastructure code. Then you choose the tool. CloudFormation requires uploading a template to AWS, which manages the stack and state automatically. Terraform requires initialization and planning steps before applying changes, with the user managing state files. The execution table shows each step, the tool involved, how state is managed, and the result. Variable tracking shows how code, templates, stacks, plans, resources, and state locations change over time. Key moments clarify why CloudFormation manages state automatically, the role of the plan step in Terraform, and what happens after uploading a CloudFormation template. The quiz tests understanding of when resources are created, where state is stored, and the effect of skipping Terraform's plan step. The snapshot summarizes key differences and usage notes.