Vivekanand is a seasoned IT professional with expertise in Azure Cloud, Azure DevOps, Terraform, Gitlab, and Kubernetes. He holds multiple certifications from Microsoft, Hashicorp, and CNCF, including the Certified Kubernetes Administrator (CKA) certification.

Vivekanand Rapaka

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Terraform

In the field of DevOps, there are numerous tools available to help streamline the process of infrastructure management and deployment. In this article, we will take a deep dive into two such tools: Terraform and Terragrunt.
Terraform is a widely used Infrastructure as Code (IaC) tool that enables users to define their infrastructure rather than manually configuring and managing it. Terraform allows for <a href="https://spacelift.io/blog/terraform-automation" target="_blank" rel="noopener">automation of infrastructure provisioning</a>, configuration, and deployment not only across multiple cloud platforms, like AWS, GCP, and Azure, but also for other products like Kubernetes, Datadog, VMware, etc.
Terragrunt, on the other hand, is a wrapper tool that was specifically developed to assist with the efficient maintenance and deployment of infrastructure. It provides a simple way to manage multiple Terraform modules and deployments, making it easier to manage complex infrastructures.
Throughout this article, we will explore both Terraform and Terragrunt individually to understand their purpose, features, and benefits. We will also compare and contrast the two tools, examining their similarities and differences. 
We will cover:
<ol>
<li><a href="https://spacelift.io/blog/terragrunt-vs-terraform#terraform-in-a-nutshell">Terraform in a nutshell</a></li>
<li><a href="https://spacelift.io/blog/terragrunt-vs-terraform#terragrunt-in-a-nutshell">Terragrunt in a nutshell</a></li>
<li><a href="https://spacelift.io/blog/terragrunt-vs-terraform#why-should-i-use-terragrunt">Why should I use Terragrunt?</a></li>
<li><a href="https://spacelift.io/blog/terragrunt-vs-terraform#terragrunt-and-terraform-comparison">Terragrunt and Terraform comparison</a></li>
<li><a href="https://spacelift.io/blog/terragrunt-vs-terraform#is-terragrunt-better-than-terraform-workspaces">Is Terragrunt better than Terraform workspaces?</a></li>
</ol>

<a href="https://www.terraform.io/">Terraform</a> is an open-source Infrastructure as Code (IaC) tool developed by Hashicorp. Its primary function is to enable users to provision their infrastructure in a simple, efficient, and declarative manner through repeatable code. With Terraform, you can automate the process of infrastructure provisioning, configuration, and deployment, whether it be on cloud or on-premises environments.
One of Terraform&#8217;s most valuable features is its cloud-agnostic nature, which allows you to deploy infrastructure to any cloud environment. This means you can use Terraform to automate your cloud infrastructure without having to learn or adopt different tools for each cloud service provider. Terraform supports a wide range of cloud platforms, including Azure, AWS, GCP, and VMware, among others.
Another key benefit of Terraform is its ability to manage complex infrastructure. With Terraform, you can define infrastructure as a set of declarative templates that can be versioned, reviewed, and modified over time. This enables you to make changes in a safe and predictable manner and maintain a consistent state across your entire infrastructure.
Terraform also supports a vast library of <a href="https://spacelift.io/blog/terraform-registry" target="_blank" rel="noopener">third-party modules and plugins</a>, which can be used to extend its functionality and integrate with other tools and services. These modules and plugins are developed and maintained by the Terraform community, which is made up of thousands of developers and DevOps professionals from around the world.

<a href="https://terragrunt.gruntwork.io/" target="_blank" rel="nofollow noopener">Terragrunt</a> is an open-source tool developed by Gruntwork that serves as a thin wrapper on top of Terraform. Its primary goal is to reduce repetition in your Terraform code and simplify its structure, making it easier to manage and maintain. Terragrunt is based on the DRY (Do Not Repeat Yourself) concept, which involves reducing redundancy by using multiple Terraform modules and managing remote states.
Learn <a href="https://spacelift.io/blog/terragrunt-with-spacelift" target="_blank" rel="noopener">how to keep your configuration DRY with Terragrunt on Spacelift</a>.
One of the key benefits of Terragrunt is its ability to manage Terraform configurations across multiple modules, enabling you to easily reuse code across your infrastructure. Terragrunt also allows you to define reusable code as modules that can be shared across different projects, reducing the time and effort required to create and maintain infrastructure code.
Another important feature of Terragrunt is its ability to manage remote states, which enables you to store and share state files securely across multiple environments. This helps to ensure that your infrastructure remains consistent and up-to-date, regardless of changes made by different team members or in different environments.

<ul>
<li><a href="https://spacelift.io/blog/terraform-environments" target="_blank" rel="noopener"><span data-sheets-value="{&quot;1&quot;:2,&quot;2&quot;:&quot;Managing Multiple Terraform Environments Efficiently&quot;}" data-sheets-userformat="{&quot;2&quot;:513,&quot;3&quot;:{&quot;1&quot;:0},&quot;12&quot;:0}">Managing Multiple Terraform Environments Efficiently</a></li>
<li><a href="https://spacelift.io/blog/5-ways-to-manage-terraform-at-scale" target="_blank" rel="noopener">5 Ways to Manage Terraform at Scale</a></li>
<li><a href="https://spacelift.io/blog/terraform-in-ci-cd" target="_blank" rel="noopener"><span data-sheets-value="{&quot;1&quot;:2,&quot;2&quot;:&quot;How to Deploy your Infrastructure in CI/CD using Terraform&quot;}" data-sheets-userformat="{&quot;2&quot;:4737,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:2,&quot;12&quot;:0,&quot;15&quot;:&quot;Arial&quot;}">How to Deploy your Infrastructure in CI/CD using Terraform</a></li>
</ul>

While working with Terraform, it is easy to write code for setting up an infrastructure limited to a single environment. However, if you are working on a project that involves multiple environments, you will need to duplicate the same code for each environment with different values, which can lead to code redundancy.
For instance, the below screenshot shows a typical Terraform project structure for deploying Azure storage account to various environments. 
You can see that all the environments, including &#8220;int,&#8221; &#8220;staging,&#8221; and &#8220;prod,&#8221; have the same files. To write the code for each environment, you would copy and paste the same code from the <a href="https://spacelift.io/blog/terraform-files" target="_blank" rel="noopener">.tf files</a> and customize them based on the environment requirement.
In this scenario, the code for storageaccount.tf, variables.tf, and outputs.tf is replicated twice for every environment.

terraform-project

terraform project

To deploy the code for the Int environment using Terraform, you need to take the following steps:
<ol>
<li style="font-weight: 400;" aria-level="1">Change to the directory for the development environment by running <code>cd '/Int'</code>.</li>
<li style="font-weight: 400;" aria-level="1">View the plan by running <code>terraform plan</code>.</li>
<li style="font-weight: 400;" aria-level="1">Apply the plan by running <code>terraform apply</code>.</li>
</ol>
These steps need to be repeated for all other environments to provision them. Terragrunt can be incredibly useful in avoiding the repetition mentioned above. 
When using Terragrunt, .hcl files are utilized, and the Terraform code itself is structured into modules and kept in the modules folder. 
The .hcl file refers to the actual module for the .tf file, while the actual Terraform code is stored in the modules folder along with its corresponding .tf file. Input values for the module are supplied in the relevant .hcl files, as shown below:

terragrunt-project

terragrunt project

To deploy a storage account for the Dev environment in the folder structure mentioned above, you should execute the following commands:
<ol>
<li style="font-weight: 400;" aria-level="1">Change to the &#8216;Dev&#8217; environment directory by running <code>cd /dev/1.dev</code>.</li>
<li style="font-weight: 400;" aria-level="1">Review the plan by running <code>terragrunt plan</code>.</li>
<li style="font-weight: 400;" aria-level="1">Apply the plan by running <code>terragrunt apply</code>.</li>
</ol>
Terragrunt also offers the option to deploy resources for all environments at once by using the <code>run-all</code> switch. In the scenario mentioned above, if a storage account needs to be deployed to all environments, the following commands should be executed:
<ol>
<li style="font-weight: 400;" aria-level="1">Change to the Terragrunt directory by running <code>cd /Terragrunt</code>.</li>
<li style="font-weight: 400;" aria-level="1">Execute <code>terragrunt run-all apply</code>.</li>
</ol>
Terragrunt&#8217;s capability to deploy resources across multiple environments not only reduces code duplication but also aids in the efficient management of environment configurations. This is just one of the many use cases of Terragrunt. 
Terragrunt is widely adopted and has a laundry <a href="https://terragrunt.gruntwork.io/docs/#features" target="_blank" rel="nofollow noopener">list</a> of use cases for users to leverage. The Gruntwork team has documented an official list of Terragrunt use cases, including managing multiple AWS accounts, handling dependencies between Terraform modules, and automating the deployment of Kubernetes clusters.
Recommended folder structure for organizing Terragrunt files can be found in the following GitHub <a href="https://github.com/gruntwork-io/terragrunt-infrastructure-live-example" target="_blank" rel="nofollow noopener">repo</a>.

Terraform and Terragrunt are both tools used for Infrastructure as Code (IaC). Let&#8217;s take a look at their similarities and differences.
Below you can find Terraform vs. Terragrunt table comparison.

terraform-vs-terragrunt

terraform vs terragrunt

<h3>Similarities</h3>
1. Syntax
Both tools use a declarative syntax for defining Infrastructure as Code, allowing you to describe the desired state of your infrastructure rather than specifying a sequence of steps to reach that state.
2. HashiCorp Configuration Language 
They both rely on HCL (HashiCorp Configuration Language) for configuration, which is a simple, human-readable language that allows you to define resources, variables, and other configuration elements.
3. Cloud providers support
Both Terraform and Terragrunt support a wide range of cloud providers, including AWS, Azure, Google Cloud, and others, making it possible to manage infrastructure across multiple cloud platforms using the same toolset.
4. Modularization
They both support modularization, allowing you to reuse and share code across multiple projects, as well as manage complex infrastructure deployments more easily.
5. Community
Both tools have a robust and active community of users, providing support, resources, and examples of how to use the tools effectively.
6. Infrastructure management
They both provide the ability to manage infrastructure in a version-controlled environment, enabling collaboration and traceability.
<h3>Differences</h3>
1. Purpose
Terraform is designed to build and configure infrastructure, while Terragrunt is a thin wrapper that is built on top of Terraform.
2. Scope
Terraform is created to operate at the resource level, while Terragrunt is designed to handle complex infrastructure deployments, which is typically composed of multiple Terraform modules.
3. Configuration
 Terraform and Terragrunt both use HCL for configuration, but Terragrunt uses additional configuration files called .hcl files that provide additional functionality such as dependency management, automatic remote state configuration, and a simple way to define input variables.
3. Dependency Management
 Terraform handles dependency at each resource level using implicit dependency and explicitly dependency between resources using <code>depends_on</code> keyword. Terragrunt provides a simple way to handle such dependencies between the modules and ensures that resources are provisioned in correct order.
Learn why and how to use <a href="https://spacelift.io/blog/terraform-depends-on" target="_blank" rel="noopener">Terraform’s <code>depends_on</code> meta-argument</a>.
4. Remote state management
Terraform handles the remote state by maintaining separate state files per environment. Terragrunt handles state files for multiple environments in a single .hcl file.
5. Project Structure
Terraform&#8217;s project structure involves separate .tf files for resource provisioning per environment, whereas Terragrunt eliminates this code duplication by utilizing modules, and input configuration per environment is managed in separate .hcl files.
6. Command execution
 With Terragrunt, you can provision multiple environments with a single command, whereas with Terraform, you have to switch to different environment folders individually in order to provision all the environments.

Terraform offers a feature called <a href="https://spacelift.io/blog/terraform-workspaces" target="_blank" rel="noopener">workspaces</a> that helps reduce code redundancy and enables the provisioning of different environments. When using Terraform, a separate state file is created per workspace.
To illustrate this better, imagine the same folder structure described in the above examples for provisioning a storage account.

To create a new workspace and provision resources for dev environment, you would use following command:
<ol>
<li style="font-weight: 400;" aria-level="1"><code>terraform workspace new int</code> &#8211; this creates a new workspace. 
To provision the resources, you would run the following command:</li>
<li style="font-weight: 400;" aria-level="1"><code>terraform plan</code> &#8211; to run the plan</li>
<li style="font-weight: 400;" aria-level="1"><code>terraform apply</code> &#8211; to apply the configuration</li>
</ol>
This creates a new state file for ‘dev’ workspace and maintains the infrastructure state. To provision another environment, we have to repeat the above steps per environment.
However, Terraform workspaces are a good option for local development and testing purposes. For production-grade deployments, it&#8217;s not a recommended feature. Terraform’s official <a href="https://developer.hashicorp.com/terraform/language/state/workspaces" target="_blank" rel="nofollow noopener">documentation</a> recommends avoiding using the workspaces feature for managing multiple environments.
Terragrunt handles the deployment of resources to different environments efficiently, not only by using a single command but also gives goods visibility and control over the source code for infrastructure provisioning. Hence, Terragrunt is an ideal tool when it comes to provisioning large-scale, complex infrastructure deployments.

In this blog post, we explored two popular IaC tools &#8211; Terraform and Terragrunt. We have discussed how both of them are similar when it comes to handling infrastructure deployments and a few key differences between both of them. We also have touched upon how Terragrunt is better when compared to using Terraform workspaces for the deployment of resources to multiple environments.
We encourage you also to explore how <a href="https://spacelift.io/" target="_blank" rel="noopener">Spacelift</a> makes it easy to work with Terraform. If you need any help managing your Terraform infrastructure, building more complex workflows based on Terraform, and managing AWS credentials per run, instead of using a static pair on your local machine, Spacelift is a fantastic tool for this. It supports Git workflows, policy as code, programmatic configuration, context sharing, drift detection, and many more great <a href="https://spacelift.io/blog/how-specialized-solution-can-improve-your-iac" target="_blank" rel="noopener">features right out of the box</a>.

<span data-sheets-value="{&quot;1&quot;:2,&quot;2&quot;:&quot;Build more complex workflows based on Terraform using policy as code, programmatic configuration, context sharing, drift detection, resource visualization and many more.&quot;}" data-sheets-userformat="{&quot;2&quot;:769,&quot;3&quot;:{&quot;1&quot;:0},&quot;11&quot;:4,&quot;12&quot;:0}">Build more complex workflows based on Terraform using policy as code, programmatic configuration, context sharing, drift detection, resource visualization and many more.

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What are the differences and similarities between Terragrunt and Terraform? See how you can use them to simplify infrastructure deployments.

212-terraform-vs-terragrunt

Terraform vs Terragrunt

Terragrunt vs. Terraform - Comparison & When to Use

In this article, we will explore <a href="https://www.terraform.io/" target="_blank" rel="nofollow noopener">Terraform</a>, a widely used Infrastructure as Code (IaC) tool. We will provide an overview of Terraform, its objectives, fundamental architecture, and the workflow that encompasses the different stages of provisioning infrastructure with Terraform. We will also highlight the advantages of using Terraform over other cloud-native infrastructure tools.
Terraform is an open-source tool developed by Hashicorp that enables you to provision your infrastructure in a simple, efficient, and declarative manner through repeatable code, whether it be on cloud or on-premises environments.
One of Terraform&#8217;s key features is its cloud-agnostic nature; you can deploy infrastructure to any cloud environment, such as Azure, AWS, GCP, and VMware, as well as on-premises environments. This benefit allows you to automate your cloud infrastructure without having to learn or adopt different tools for each cloud service provider.

Terraform architecture mainly consists of the following components:
<ul>
<li>Terraform Core</li>
<li>Providers</li>
<li>State file</li>
</ul>
Below you can see the Terraform architecture diagram.

terraform-architecture-diagram

terraform architecture diagram

<h3>Terraform Core</h3>
Terraform&#8217;s core (also known as Terraform CLI) is built on a statically-compiled binary that&#8217;s developed using the Go programming language.
This binary is what generates the command line tool (CLI) known as &#8220;terraform,&#8221; which serves as the primary interface for Terraform users. It is open source and can be accessed on the Terraform GitHub repository.
<h3>Providers</h3>
<a href="https://spacelift.io/blog/terraform-providers" target="_blank" rel="noopener">Terraform providers</a> are modules that enable Terraform to communicate with a diverse range of services and resources, including but not limited to cloud providers, databases, and DNS services. 
Each provider is responsible for defining the resources that Terraform can manage within a particular service and translating Terraform configurations into API calls that are specific to that service.
Providers are available for numerous services and resources, including those developed by major cloud providers like AWS, Azure, and Google Cloud, as well as community-supported providers for various services. By utilizing providers, Terraform users can maintain their infrastructure in a consistent and reproducible manner, regardless of the underlying service or provider. 
<h3>State file</h3>
The <a href="https://spacelift.io/blog/terraform-state" target="_blank" rel="noopener">Terraform state file</a> is an essential aspect of Terraform&#8217;s functionality. It is a JSON file that stores information about the resources that Terraform manages, as well as their current state and dependencies. 
Terraform utilizes the state file to determine the changes that need to be made to the infrastructure when a new configuration is applied. It also ensures that resources are not unnecessarily recreated across multiple runs of Terraform. 
The state file can be kept locally on the machine running Terraform or remotely using a remote backend like Azure Storage Account or <a href="https://spacelift.io/blog/terraform-s3-backend" target="_blank" rel="noopener">Amazon S3</a>, or HashiCorp Consul. It is crucial to safeguard the state file and maintain frequent backups since it contains sensitive information about the infrastructure being managed.

Declaring resources is very easy in Terraform. <a href="https://spacelift.io/blog/terraform-files" target="_blank" rel="noopener">Terraform files</a> always end with the extension <code>.tf</code>.
The basic Terraform structure contains the following elements.
<h3>Terraform Block</h3>
A Terraform block specifies the required providers that terraform needs in order to execute the script. This block also contains the source block that specifies from where terraform should download the provider and also the required version. 
Below is an example:

<h3>Provider Block</h3>
A provider block specifies the cloud provider and the API credentials required to connect to the provider&#8217;s services. It includes the provider name, version, access key, and secret key. 
For example, if you are using Azure as your service provider, it would look as follows:

<h3>Resource Block</h3>
A resource block represents a particular resource in the cloud provider&#8217;s services. It includes the resource type, name, and configuration details. This is the main block that specifies the type of resource we are trying to deploy. 
Below is an example for creating a resource group in Azure.

<h3>Data Block</h3>
A data block is used to fetch data from the provider&#8217;s services, which can be used in resource blocks. It includes the data type and configuration details. 
This is used in scenarios where the resource is already deployed, and you would like to fetch the details of that resource. 
The code snippet below helps you to fetch details of an existing resource group that is already deployed.

<h3>Variable Block</h3>
A variable block is used to define input variables that are used in the Terraform configuration. It includes the variable name, type, and default value. 
Following is an example of a variable block in Terraform.

<h3>Output Block</h3>
An output block is used to define <a href="https://spacelift.io/blog/terraform-output" target="_blank" rel="noopener">output values</a> that are generated by the Terraform configuration. It includes the output name and value.

<h3>Provisioners</h3>
<a href="https://spacelift.io/blog/terraform-provisioners" target="_blank" rel="noopener">Terraform provisioners</a> are a feature that allows Terraform to execute scripts or commands on newly created resources or instances. These scripts can be used for various purposes, such as setting up and configuring the infrastructure, installing software, running tests, and performing any other necessary actions. 
Provisioners are executed after a resource has been created and can also be triggered when a resource is destroyed. Terraform comes with several built-in provisioners, including the file provisioner for copying files to a resource and the remote-exec provisioner for running commands on a remote machine. It is also possible to create custom provisioners for more advanced use cases. 
This is mainly used as a last resort unless you are unable to achieve your desired outcome with existing resource blocks in Terraform.

<ul>
<li><a href="https://spacelift.io/blog/5-ways-to-manage-terraform-at-scale" target="_blank" rel="noopener"><span data-sheets-value="{&quot;1&quot;:2,&quot;2&quot;:&quot;5 Ways to Manage Terraform at Scale&quot;}" data-sheets-userformat="{&quot;2&quot;:6723,&quot;3&quot;:{&quot;1&quot;:0},&quot;4&quot;:{&quot;1&quot;:2,&quot;2&quot;:16777215},&quot;9&quot;:0,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Arial&quot;}">5 Ways to Manage Terraform at Scale</a></li>
<li><a href="https://spacelift.io/blog/terraform-automation" target="_blank" rel="noopener"><span data-sheets-value="{&quot;1&quot;:2,&quot;2&quot;:&quot;How to Automate Terraform Deployments and Infrastructure Provisioning&quot;}" data-sheets-userformat="{&quot;2&quot;:513,&quot;3&quot;:{&quot;1&quot;:0},&quot;12&quot;:0}">How to Automate Terraform Deployments and Infrastructure Provisioning</a></li>
<li><a href="https://spacelift.io/blog/terraform-in-ci-cd" target="_blank" rel="noopener"><span data-sheets-value="{&quot;1&quot;:2,&quot;2&quot;:&quot;Deploying Infrastructure in CI/CD with Terraform&quot;}" data-sheets-userformat="{&quot;2&quot;:513,&quot;3&quot;:{&quot;1&quot;:0},&quot;12&quot;:0}">Deploying Infrastructure in CI/CD with Terraform</a></li>
</ul>

Terraform workflow is the set of steps and actions that a user follows to manage infrastructure using Terraform. 
Following are the general steps that are involved in the lifecycle of a resource creation:
<ol>
<li style="font-weight: 400;" aria-level="1">Define: Author your Infrastructure as Code in a Terraform configuration file with all the required blocks.</li>
<li style="font-weight: 400;" aria-level="1">Initialize: Initialize the Terraform working directory and download any necessary plugins. This is usually done using <code>terraform init</code> command.</li>
<li style="font-weight: 400;" aria-level="1">Review: Review the Terraform execution plan to see what changes will be made to the infrastructure. This is done using the <code>terraform plan</code> command. Running this command will show the actions that Terraform is going to perform when <code>terraform apply</code> command is run.</li>
<li style="font-weight: 400;" aria-level="1">Apply: Apply the changes to create or modify the infrastructure. Once you are comfortable with the changes that are shown in the output of <code>terraform plan</code> command, you can apply those changes using <code>terraform apply</code> command.</li>
<li style="font-weight: 400;" aria-level="1">Inspect: You can Inspect the state of the infrastructure using the Terraform state file.</li>
</ol>
In case you need to apply any new configuration, make the necessary changes in the config and follow the above steps to apply the configuration.
These steps are often repeated as part of a Continuous Integration/Continuous Delivery (CI/CD) pipeline or as part of ongoing infrastructure management. <a href="https://spacelift.io/blog/terraform-infrastructure-as-code" target="_blank" rel="noopener">Terraform&#8217;s declarative approach to infrastructure as code</a> allows for a consistent and reproducible workflow, where infrastructure changes can be tracked, reviewed, and audited over time.
If you want to have all the Terraform commands in one place, check out our <a href="https://spacelift.io/blog/terraform-commands-cheat-sheet" target="_blank" rel="noopener">Terraform Cheat Sheet</a>.
We encourage you also to explore <a href="https://docs.spacelift.io/" target="_blank" rel="noopener">how Spacelift makes it easy to work with Terraform</a>. If you need any help managing your Terraform infrastructure, building more complex workflows based on Terraform, and managing AWS credentials per run, instead of using a static pair on your local machine, <a href="https://spacelift.io/" target="_blank" rel="noopener">Spacelift</a> is a fantastic tool for this.

This blog post covered several key topics related to Terraform and delved into the Terraform template structure and architecture, including the Terraform core and provisioners. Additionally, the post discussed the various steps involved in Terraform&#8217;s workflow. Thank you for reading!

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