> ## Documentation Index
> Fetch the complete documentation index at: https://notes.kodekloud.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Terraform implications for users and the open source community

> The article discusses Terraforms licensing shift and the emergence of OpenTofu as an open-source alternative.

HashiCorp’s Terraform has shifted from the Mozilla Public License (MPL 2.0) to the Business Source License (BSL), signaling an enterprise-focused direction backed by commercial customers. This change reshapes how users, providers, and the open-source community interact with Terraform’s core code.

## Community Response and the Birth of OpenTofu

In reaction to the BSL, developers and organizations united to create a fully open-source fork. What began as OpenTF quickly transformed into **OpenTofu**, a project championed by a growing manifesto of contributors. Endorsements from leading companies and foundations underscore the community’s commitment to open governance.

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  ![The image discusses the impact of Terraform's shift on users and the open-source community, highlighting the creation of OpenTofu, which evolved from OpenTF and received support from numerous companies, projects, foundations, and individuals.](https://kodekloud.com/kk-media/image/upload/v1752882854/notes-assets/images/OpenTofu-A-Beginners-Guide-to-a-Terraform-Fork-Including-Migration-From-Terraform-Terraform-implications-for-users-and-the-open-source-community/terraform-impact-opentofu-opentf-community.jpg)
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Community collaboration has proven powerful in maintaining a vendor-neutral Infrastructure as Code (IaC) tool.

## License Timeline

The licensing trajectory for Terraform is summarized below:

| Terraform Version | License                              | Key Impact                                                 |
| ----------------- | ------------------------------------ | ---------------------------------------------------------- |
| 1.0 – 1.5.7       | Mozilla Public License 2.0 (MPL 2.0) | Fully open-source, no usage restrictions                   |
| 1.6+              | Business Source License (BSL)        | Source available, production use restricted after a period |

<Callout icon="lightbulb" color="#1CB2FE">
  The Business Source License provides source code access but limits commercial distribution for a defined time. Review HashiCorp’s [BSL terms](https://github.com/hashicorp/terraform/blob/main/LICENSE) for complete details.
</Callout>

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  ![The image discusses the impact of Terraform's shift to a Business Source License (BSL) from version 1.6 onward, affecting users and the open-source community.](https://kodekloud.com/kk-media/image/upload/v1752882855/notes-assets/images/OpenTofu-A-Beginners-Guide-to-a-Terraform-Fork-Including-Migration-From-Terraform-Terraform-implications-for-users-and-the-open-source-community/terraform-bsl-impact-open-source-users.jpg)
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## OpenTofu’s Early Milestones

Since its launch, OpenTofu has quickly achieved significant benchmarks:

* **OpenTofu 1.6.0**: First stable release, fully compatible with Terraform 1.6.
* **September 20, 2023**: Official project announcement by the Linux Foundation.
* **Within two months**: Pledges from over **140 organizations** and **600 individuals**, reflecting broad industry support.

<Frame>
  ![The image announces that on September 20, 2023, the Linux Foundation declared the formation of OpenTofu.](https://kodekloud.com/kk-media/image/upload/v1752882856/notes-assets/images/OpenTofu-A-Beginners-Guide-to-a-Terraform-Fork-Including-Migration-From-Terraform-Terraform-implications-for-users-and-the-open-source-community/linux-foundation-opentofu-announcement-2023.jpg)
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<Callout icon="triangle-alert" color="#FF6B6B">
  When migrating existing Terraform configurations to OpenTofu, ensure you update provider references and verify compatibility in a staging environment before production rollout.
</Callout>

With robust backing from the Linux Foundation and a vibrant contributor base, OpenTofu is set to become the leading open-source IaC solution for users seeking a fully unrestricted Terraform experience.

## Links and References

* [HashiCorp Terraform Documentation](https://www.terraform.io/docs)
* [Mozilla Public License 2.0](https://www.mozilla.org/en/MPL/2.0/)
* [Business Source License (BSL) 1.1](https://mariadb.com/bsl-1-1/)
* [OpenTofu GitHub Repository](https://github.com/OpenTofu/OpenTofu)

<CardGroup>
  <Card title="Watch Video" icon="video" cta="Learn more" href="https://learn.kodekloud.com/user/courses/opentofu-a-beginners-guide-to-a-terraform-fork-including-migration-from-terraform/module/5a06d90f-8a8a-49a9-99d6-30b70e37bc83/lesson/5ab476d8-d6ac-45cc-a437-4bcd8d277135" />
</CardGroup>