Terraform Licensing Update: From MPL to BSL

Arun Prakash
2 min readAug 21, 2023

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In a landscape where technology never stands still, HashiCorp’s recent move has sent ripples through the open-source realm. The company has made a seismic shift, transitioning its Terraform project from the Mozilla Public License (MPL) to the Business Source License (BSL). So, what does this pivotal moment mean for all of us? Let’s embark on a journey to decode the implications:

MPL: Reflecting on the Past

The MPL era saw HashiCorp generously offering the complete Terraform code as open-source, inviting all to freely redistribute it. It was a fertile ground for innovation, nurturing growth, and community collaboration. However, this openness also raised concerns. Opportunistic companies seized the chance to rebrand and market Terraform-based services. 🛠️

The Transformation to BSL: Unveiling a New Chapter

With the paradigm shift to BSL, HashiCorp has reset the game. The Business Source License strikes a delicate balance between openness and safeguarding intellectual property. The repercussions are clear: companies that previously built and sold Terraform-based products in direct competition with HashiCorp will now face redefined negotiations. 🤝

🌟 Impact Zones: Who’s Affected and Who’s Not? 🌟

🔓 Non-Commercial Users: Fear not! If you’re wielding Terraform for your projects without encroaching on HashiCorp’s turf, you’re in the clear. 🛡️ Impacted Enterprises: For those who constructed and marketed Terraform-powered services that encroached on HashiCorp’s domain, strategic recalibration is in order.

The Pros and Cons: Navigating the Divide

The HashiCorp team’s decision is twofold. On one hand, it shields their dedication and hard work from being cloned and commodified without due recognition. 💡 Conversely, ponder the plight of those who invested their energies in Terraform’s advancement, nurturing aspirations to build upon its foundation. This shift could potentially sow seeds of doubt. ⚖️

📚 A Wider Lens: Contextualizing the Shift

HashiCorp isn’t the trailblazer in this arena. MongoDB, Elastic, and Redis Labs, among others, have undertaken similar transitions after extensive MPL tenures. The tech industry is in constant flux, with licensing strategies adapting to sustain equitable innovation.

🚀 Gazing Ahead: The Uncharted Path

As the tech community, let’s train our sights on how this transformative licensing maneuver will sculpt the future. Share your musings, insights, and predictions — after all, we’re fellow travelers on this ever-evolving journey! 💬

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Arun Prakash
Arun Prakash

Written by Arun Prakash

I write about Cloud, DevOps and SRE Stuffs! Passionate about Security !

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