Introduction
The infrastructure-as-code landscape experienced a seismic shift in 2023 when HashiCorp changed Terraform’s licensing from Mozilla Public License 2.0 to Business Source License 1.1. This prompted the Linux Foundation to create OpenTofu, a truly open-source fork that maintains full compatibility while preserving the MPL-2.0 license.
In this comprehensive guide, we’ll explore the key differences between Terraform and OpenTofu in 2025, examine provider compatibility, module ecosystem support, and provide a step-by-step tutorial for migrating your Terraform state to OpenTofu with zero downtime on your VPS infrastructure.
Licensing Changes and Their Impact
Terraform’s BSL 1.1 Restrictions
HashiCorp’s Business Source License 1.1 restricts commercial competitors from using Terraform in their competing offerings. While most users can continue using Terraform freely, organizations providing infrastructure automation services or building competing products face potential licensing issues.
OpenTofu: True Open Source
OpenTofu maintains the original MPL-2.0 license, ensuring:
- Commercial freedom – No restrictions on business use
- Community governance – Transparent development process
- Fork protection – Prevents future licensing changes
- Vendor neutrality – No single company control
Provider and Module Compatibility
Provider Ecosystem Status
Both tools maintain excellent provider compatibility in 2025:
- AWS Provider – Full compatibility with both platforms
- Azure Provider – Native support maintained
- Google Cloud Provider – Complete feature parity
- Kubernetes Provider – Identical functionality
- Third-party providers – 95%+ compatibility rate
OpenTofu’s registry at registry.opentofu.org mirrors most Terraform providers, with some providers specifically endorsing OpenTofu for future development.
Module Ecosystem Differences
The module ecosystem remains largely compatible, though some nuances exist:
- Terraform Registry modules – Work with OpenTofu without modification
- Private modules – Seamless migration possible
- Community modules – Growing OpenTofu-specific repositories
- Version pinning – Recommended for production stability
Prerequisites
Before proceeding with the migration, ensure you have:
- VPS Requirements: 2 GB RAM, 2 vCPU, 20 GB storage
- Operating System: Ubuntu 22.04 LTS or Ubuntu 24.04 LTS
- Existing Terraform installation (version 1.5.x or higher recommended)
- Administrative access to your VPS infrastructure
- Backup strategy for your Terraform state files
- Network connectivity to your cloud provider APIs
Step-by-Step Zero-Downtime State Migration Tutorial
Step 1: Backup Your Existing Terraform State
First, create a comprehensive backup of your current infrastructure state:
# Create backup directory
mkdir -p ~/terraform-migration-backup/$(date +%Y%m%d)
# Backup state file (local)
cp terraform.tfstate ~/terraform-migration-backup/$(date +%Y%m%d)/
# For remote state, pull and backup
terraform state pull > ~/terraform-migration-backup/$(date +%Y%m%d)/terraform.tfstate.backup
# Backup configuration files
tar -czf ~/terraform-migration-backup/$(date +%Y%m%d)/terraform-configs.tar.gz *.tf *.tfvarsStep 2: Install OpenTofu
Install OpenTofu alongside your existing Terraform installation:
# Download and install OpenTofu
curl -fsSL https://get.opentofu.org/install-opentofu.sh | sudo sh
# Verify installation
tofu version
# Alternative: Install via package manager
curl -fsSL https://packages.opentofu.org/opentofu/tofu/gpgkey | sudo gpg --dearmor -o /usr/share/keyrings/opentofu.gpg
echo "deb [signed-by=/usr/share/keyrings/opentofu.gpg] https://packages.opentofu.org/opentofu/tofu/deb/ any main" | sudo tee /etc/apt/sources.list.d/opentofu.list
sudo apt update && sudo apt install tofuStep 3: Validate Configuration Compatibility
Test your existing configuration with OpenTofu:
# Initialize with OpenTofu (in a test directory)
cp -r /path/to/terraform-project ~/opentofu-test/
cd ~/opentofu-test/
# Initialize OpenTofu
tofu init
# Validate configuration
tofu validate
# Plan to check for differences
tofu planStep 4: Perform Zero-Downtime State Migration
Execute the migration without affecting running infrastructure:
# Method 1: Direct state migration
terraform state pull > current-state.json
tofu state push current-state.json
# Method 2: Using state import (for complex scenarios)
# Export resource list first
terraform state list > resource-list.txt
# Import each resource to OpenTofu (example)
while read resource; do
terraform show -json | jq -r '.values.root_module.resources[] | select(.address == "'$resource'") | .values' > temp.json
tofu import "$resource" $(cat temp.json | jq -r '.id')
done < resource-list.txtStep 5: Verify Migration Success
Confirm the migration completed without infrastructure changes:
# Run plan to verify no changes
tofu plan
# Output should show: "No changes. Your infrastructure matches the configuration."
# Compare state files
diff <(terraform state pull | jq 'del(.serial, .lineage)') <(tofu state pull | jq 'del(.serial, .lineage)')
# Test a small, non-destructive change
tofu apply -auto-approveBest Practices and Security Considerations
State Management Security
- Encrypt state files both at rest and in transit
- Use remote backends like S3 with DynamoDB locking
- Implement proper IAM policies for state access
- Enable versioning on state storage backends
Migration Optimization Tips
- Test in staging environments before production migration
- Use version constraints for providers and modules
- Enable detailed logging during migration
- Implement automated backup strategies for rollback capability
- Consider gradual migration for large infrastructures
Warning: Destructive Operations
Critical: Always test state migrations in non-production environments first. Incorrect state manipulation can result in resource destruction or orphaned infrastructure.
Conclusion
The choice between Terraform and OpenTofu in 2025 largely depends on your organization’s licensing requirements and long-term strategy. While Terraform continues to innovate under HashiCorp’s leadership, OpenTofu offers licensing freedom and community governance that many organizations value.
Key takeaways:
- Provider compatibility remains excellent for both platforms
- Zero-downtime migration is achievable with proper planning
- State management security is crucial regardless of your choice
- Testing and validation prevent costly migration mistakes
Whether you choose to migrate to OpenTofu or continue with Terraform, ensure your infrastructure automation aligns with your business requirements. For those running infrastructure on reliable cloud platforms, consider exploring how Onidel VPS in Singapore or our global locations can support your terraform and infrastructure management needs with high-performance EPYC Milan processors and enterprise-grade features.
