Terraform software has become a core tool for managing cloud infrastructure. Developers and operations teams use it to define resources as code, automate deployments, and keep environments consistent. Because it is open-source and flexible, Terraform plays a critical role in both terraform iac and terraform security.
However, automation only helps when it is applied safely. A single mistake, such as opening an AWS Security Group to the entire internet, can create major risks. Recent research shows how attackers target Terraform to breach IaC workflows. That is why teams must follow terraform best practices from the start. In this FAQ, we answer the most common questions about Terraform and show how to it in a secure DevSecOps workflow.
What is Terraform Software?
Terraform software is an open-source Infrastructure as Code (IaC) tool created by HashiCorp. It lets developers define infrastructure with simple configuration files written in HCL (HashiCorp Configuration Language). With Terraform, you can declare the desired state of resources like EC2 instances, S3 buckets, or Kubernetes clusters, and the tool handles creating or updating them to match.
Unlike manual cloud provisioning, terraform infrastructure as code ensures consistency across environments. For security, it reduces human error by encoding configurations as code. Many teams also integrate terraform security scans to catch risks such as unencrypted storage or overly broad IAM roles.
What is Terraform Software Used For?
Teams use terraform software to manage infrastructure in multi-cloud environments. Common use cases include:
- Provisioning compute, storage, and networking resources.
- Managing Kubernetes clusters.
- Automating deployments in CI/CD pipelines.
- Applying consistent security rules to cloud workloads.
In addition, terraform security makes it possible to define guardrails as code. For example, you can enforce encryption for RDS databases or restrict inbound traffic in terraform iac templates. This prevents risky defaults from reaching production.
How Does Terraform IaC Work?
Terraform iac works in a simple but powerful flow:
- Write → define resources in
.tffiles. - Plan → preview changes with
terraform plan. - Apply → enforce the desired state with
terraform apply.
Because Terraform tracks resources in a state file, it knows exactly what exists and what must change. From a security perspective, this is crucial. For example, if an S3 bucket drifts from encrypted to unencrypted, Terraform can detect and fix it. Integrating terraform security checks into this process ensures that insecure resources are never deployed.
How to Use Terraform for Security and IaC?
You can use terraform software by writing configuration files that describe your infrastructure, then applying them through your cloud provider. With terraform iac, these files act as blueprints that define servers, networking, storage, and permissions in a consistent way.
For example, you can use Terraform to provision Linux servers, configure Kubernetes clusters, or manage AWS Security Groups. In addition, many teams rely on terraform security practices to enforce encryption, restrict IAM policies, and rotate secrets automatically.
However, secure use of Terraform requires more than discipline. Manual reviews alone do not scale. This is why teams need IaC security tools that scan Terraform files automatically, block unsafe defaults like open Security Groups, and enforce guardrails directly in CI/CD pipelines. As CI/CD evolves, aligning with security standards for pipelines in 2025 becomes essential.
By integrating these practices and tools, terraform software moves beyond automation. It turns into a safeguard where every change to infrastructure runs through security checks before reaching production.
Learn the Foundations of Infrastructure as Code
Most AWS resources are provisioned with Terraform or CloudFormation. If you’re new to Infrastructure as Code or want a refresher, read our guide.
How to Install Terraform Software?
Installing terraform software is straightforward. On Linux, you can use apt install terraform (Ubuntu) or yum install terraform (Red Hat). On macOS, you can use Homebrew. Windows developers usually run it inside WSL or containers.
For safety, always download from official HashiCorp sources. Do not trust unverified builds. After installation, check your version with:
terraform versionIs Terraform Software Free?
Yes. Terraform software is open-source and free to use. However, HashiCorp also offers Terraform Cloud and Terraform Enterprise for collaboration, policy enforcement, and advanced features.
For most teams, starting with the free open-source version works well. As workloads grow, Terraform Cloud adds capabilities like remote state management and role-based access control, which improve terraform security at scale.
What is Terraform Cloud and Why It Matters for Security?
Terraform Cloud is a SaaS platform that extends terraform iac with collaboration features. It stores state files remotely, manages workspaces for multiple teams, and integrates policies with Sentinel.
From a terraform security perspective, this matters because storing state locally can leak secrets or create conflicts. Terraform Cloud keeps the state protected, versioned, and auditable. In CI/CD pipelines, this prevents misconfigurations and adds visibility into every change.
What is a Terraform Module?
A Terraform module is a reusable package of IaC code. Instead of repeating the same blocks across environments, you can import a module and configure it with variables.
For example, a module for an S3 bucket can enforce encryption, logging, and access restrictions by default. This makes terraform security stronger, since teams reuse hardened templates instead of reinventing insecure ones. Following terraform best practices, modules should always enforce least privilege and avoid exposing sensitive defaults.
How to Manage AWS Security Groups with Terraform?
An AWS Security Group acts like a virtual firewall. In Terraform, you define it with the aws_security_group resource.
For example, this configuration opens port 22 to the internet:
ingress {
from_port = 22
to_port = 22
protocol = "tcp"
cidr_blocks = ["0.0.0.0/0"]
}
While it works, it creates a major risk. Attackers scan constantly for open SSH ports. Instead, restrict access to trusted IPs and automate reviews in CI/CD. With terraform iac, you can encode safe defaults and with terraform security scans, you can block rules like 0.0.0.0/0 before they reach production.
What are Terraform Best Practices for Security and IaC?
Following terraform best practices helps teams improve both reliability and security. Without clear rules, automation can create risks instead of solving them. With structured workflows and guardrails, however, every change becomes safer and more predictable.
Some of the most important terraform iac best practices include:
- Use modules to keep configurations modular and reusable → modularity avoids repetition and ensures consistency.
- Encrypt sensitive data and never hardcode secrets → secrets should be stored securely, not inside repositories.
- Store state files in secure backends like Terraform Cloud → local state files increase the chance of conflicts or leaks.
- Validate templates in CI/CD pipelines → checks in pipelines stop misconfigurations before they reach production.
- Apply least privilege to IAM policies → limit permissions to what is strictly necessary for each resource.
In addition, relying only on manual reviews is never enough. IaC security tools scan Terraform templates automatically, catch unsafe defaults such as open Security Groups or unencrypted storage, and enforce guardrails inside pipelines.
As a result, teams that adopt terraform software as part of their DevSecOps workflows gain the most when they treat security as code. With terraform security checks integrated into CI/CD, unsafe resources are blocked consistently. This way, terraform iac becomes not just a way to automate deployments but also a safeguard that protects infrastructure by design.
How Xygeni Helps Teams Apply Terraform Security Best Practices
Terraform delivers consistency, but only if teams apply it correctly. Manual reviews do not scale. Xygeni integrates directly into CI/CD to automate terraform security checks and enforce guardrails on terraform iac.
- Catch risks early → scans Terraform templates for open Security Groups, unencrypted resources, or wildcard IAM roles.
- Protect secrets → ensures sensitive data is never committed in plain text.
- Secure workloads → detects CVEs, malware, and misconfigurations in container images defined by Terraform.
- Automate remediation → AutoFix generates safe pull requests to patch insecure templates.
As a result, teams apply terraform best practices by default. Instead of relying on manual checks, Xygeni ensures every commit and pipeline enforces terraform software security at scale.
Conclusion: Secure Terraform Workflows from the Start
Terraform software gives developers a fast and reliable way to define infrastructure as code. However, skipping security leads to problems such as misconfigured Security Groups, unencrypted databases, or leaked secrets. For that reason, treating terraform iac as both automation and security is essential.
For example, encoding policies as code prevents unsafe defaults from ever deploying. In addition, automated scans in CI/CD pipelines create a safety net that catches misconfigurations before release. Moreover, applying terraform best practices like modular playbooks, least privilege, and secret protection keeps every environment consistent.
As a result, combining terraform security checks with IaC automation helps teams move quickly without losing control. In practice, this means developers can innovate, while guardrails make sure every resource stays safe. Therefore, adopting terraform software with strong terraform iac and security practices is not just efficient — it builds cloud environments that are reliable and resilient.
