In August 2023, HashiCorp relicensed Terraform from the MPL open-source license to the Business Source License (BSL 1.1). The BSL is source-available, not open source: you can still read and run the code, but you cannot build a competing commercial product on it. For the vast majority of teams simply using Terraform to manage their own infrastructure, nothing about day-to-day work changed — and that is the honest headline.
The response was OpenTofu, a fork of the last MPL-licensed Terraform, now stewarded by the Linux Foundation. OpenTofu stays open source, tracks the HCL language closely, and is a near drop-in replacement for most workflows, with some genuinely useful features of its own such as state encryption and early variable evaluation. It is not a perfect mirror, and much of the provider and module ecosystem still centers on the Terraform registry, so a migration is a real decision rather than a rename.
We do not hold a religious position here. If you are an enterprise with a Terraform Cloud contract and Sentinel policies, staying put is often the right call. If you are wary of vendor lock-in or need everything under an OSI-approved license, OpenTofu is a strong, stable choice. What matters is that you decide deliberately, with a written rationale, rather than drifting into one by accident. Our Terraform vs Pulumi vs OpenTofu comparison scores all three head-to-head; we lay out the trade-offs for your specific situation and support whichever you pick.
When a migration is the answer, we treat it as an engineering project, not a find-and-replace. That means pinning your current version, standing up the new binary in CI alongside the old one, running plans through both to prove they agree, and cutting over environment by environment behind feature branches. The same discipline applies to the migrations we run most often: lifting a click-ops estate into code, moving local state to a locked remote backend, or upgrading across major provider versions. Every step produces a reviewable plan, and there is always a way back.