The following points highlight the differences between Terraform and Cloudformation:

• User-friendliness: 
  • Terraform encompasses numerous Cloud Service Providers such as AWS, Azure, GOOGLE Cloud Platform, and many more, while CloudFormation is limited to AWS services. Terraform covers the majority of AWS resources.
• Based on language: 
  • CloudFormation employs either JSON or YAML as a language. CloudFormation is now simple to read and manage. However, AWS developers are restricted from creating CloudFormation templates that are more than 51MB in size. Developers must establish a layered STACK for the templates if the template exceeds this size restriction.
  • Terraform, on the other hand, makes use of Hashicorp's own HCL language (Hashicorp Configuration Language). This language is also JSON compatible.
• State-management: 
  • Because CloudFormation is an AWS managed service, it examines the infrastructure on a regular basis to see if the provisioned infrastructure is still in good shape. If anything changes, CloudFormation receives a thorough response.
  • Terraform, on the other hand, saves the state of the infrastructure on the provisioning machine, which can be either a virtual machine or a remote computer. The state is saved as a JSON file, which Terraform uses as a map to describe the resources it manages.
  • To summarise, Cloudformation's state is managed out-of-the-box by CloudFormation, which prevents conflicting updates. Terraform stores the state on a local disk, which makes it easier to synchronise the state. Terraform states can also be saved in storage services like S3, which is another recommended practice for state management. This must be defined on the backend, making management easier and safer.
• Cost:
  • The nicest aspect about both of these tools is that they are both COMPLETELY free. Both of these technologies have sizable communities that provide plenty of HELP and examples. Cloudformation is completely free. The only expense that consumers pay is for the AWS service that CloudFormation provides. Terraform is a completely free and open-source application. Terraform, on the other hand, includes a premium enterprise version with more collaboration and governance features.
• Integration of Multiple Clouds:
  • Terraform is the WAY to go if you want to supply services across several cloud platforms. While Terraform works with a variety of cloud providers, including AWS, GCP, Azure, and others, CloudFormation is exclusive to AWS. Cloudformation is not for you if your setup includes several cloud installations. If you're using AWS resources like EC2, S3, and so on, you should stick to Cloudformation.