Prerequisites

chevron-rightPrerequisiteshashtag

Good one 👍 Before managing AWS using Terraform, enterprises (or even individual engineers) usually set up a few prerequisites so things don’t break later.

Here’s a structured checklist for you:


🔹 1. AWS Side Prerequisites

  • AWS Account(s) → sandbox, dev, stage, prod (large orgs use AWS Organizations).

  • IAM User / Role for Terraform

    • Should have programmatic access (Access Key + Secret Key).

    • Recommended: use an IAM role with least-privilege policies.

  • Permissions → depends on scope:

    • Admin privileges (for POC).

    • Granular policies (for production): e.g., AmazonVPCFullAccess, AmazonEKSClusterPolicy, AmazonS3FullAccess.

  • S3 Bucket for State Storage (backend).

  • DynamoDB Table for State Locking (to prevent race conditions in teams).

  • Tagging Policy → Enterprises define required tags (e.g., Environment, Owner, CostCenter).


🔹 2. Local / Developer Machine

  • Terraform CLI installed → latest stable version.

  • AWS CLI installed & configured → with profiles in ~/.aws/credentials.

    aws configure --profile dev
  • Access to Git → store Terraform code in a repo (GitHub/GitLab/Bitbucket).

  • Basic Editor Setup → VS Code with Terraform extension (syntax + linting).


🔹 3. Terraform-Specific Setup

  • Remote Backend Configuration

    • Example: store state in S3 + DynamoDB.

  • Workspaces or Environment Strategy

    • Decide how you’ll separate dev/stage/prod (workspaces, separate state files, or separate repos).

  • Module Registry or Folder Structure

    • Reusable modules for networking/, compute/, security/.

  • Variables & tfvars → define defaults and environment-specific overrides.


🔹 4. Team / Enterprise Practices

  • Version Control (Git) → infra changes go via Pull Requests.

  • CI/CD Integration → run terraform plan and terraform apply in pipelines.

  • Secrets Management

    • Never hardcode AWS keys in .tf files.

    • Use AWS Vault, SSM, or Secrets Manager.

  • Policies & Guardrails

    • Use Terraform Cloud/Sentinel or OPA to enforce compliance.


🔹 5. Knowledge Prerequisites

  • Basic AWS concepts → VPC, IAM, EC2, S3, RDS.

  • Terraform basics → providers, resources, variables, outputs, modules.

  • Git workflow → branching, PR reviews.


Minimum for a POC:

  • AWS IAM user with programmatic access.

  • Terraform + AWS CLI installed.

  • S3 bucket + DynamoDB for state.

For Enterprise Use:

  • Role-based access, centralized remote backend, reusable modules, CI/CD pipelines, policy enforcement.


👉 Pavan, do you want me to draft a step-by-step setup guide (commands + config files) for initializing Terraform with AWS (including remote S3 + DynamoDB backend) so you can use it as a starter template?

Questions before setup

chevron-rightHow Enterprises Separate Dev / Stage / Prodhashtag

Solid question 👌 This is one of the most debated topics in enterprises when adopting Terraform for AWS. Let’s break it down:

Note: I reccomend 2 repository for 2 env eg dev and prod but limit to reuse module so use env files for separate env and separate project repofor different aws account


🔹 How Enterprises Separate Dev / Stage / Prod

There are 3 common strategies:


1. Separate Environment Files (.tfvars)

  • One Terraform project, with different *.tfvars files per environment.

    variables.tf
    main.tf
    dev.tfvars
    stage.tfvars
    prod.tfvars
  • Deploy by selecting the file:

    terraform apply -var-file=dev.tfvars
    terraform apply -var-file=prod.tfvars

✅ Pros:

  • Simple, easy to start.

  • Minimal duplication.

❌ Cons:

  • Risky: one mistake (wrong -var-file) can mess up prod.

  • Harder to enforce isolation between environments.


2. Terraform Workspaces

  • Single codebase, multiple workspaces → default, dev, stage, prod.

    terraform workspace new dev
    terraform workspace select prod
    terraform apply
  • State files are automatically separated by workspace.

✅ Pros:

  • Cleaner separation of states.

  • Useful for short-lived environments (feature branches).

❌ Cons:

  • Harder to manage in CI/CD (workspaces aren’t very Git-friendly).

  • Not popular for long-lived environments in enterprises.


3. Separate State Backends / Separate Repos (Enterprise Standard)

  • Each environment has its own state backend (S3 bucket prefix or separate workspace in Terraform Cloud).

  • Often managed in separate Git repos or directories:

    networking/
      dev/
      stage/
      prod/
    eks/
      dev/
      stage/
      prod/
  • Each environment runs independently with its own backend:

    backend "s3" {
      bucket = "my-tf-states"
      key    = "eks/dev/terraform.tfstate"
      region = "us-east-1"
      dynamodb_table = "terraform-locks"
    }

✅ Pros:

  • Strong isolation (no chance of overwriting prod by mistake).

  • Easy integration with CI/CD (different pipelines per env).

  • Fits well with Terraform Cloud workspaces or S3 state backends.

❌ Cons:

  • More boilerplate code.

  • Harder to share infra between environments (unless modularized).


🔹 Terraform Cloud State vs S3 State

Feature

Terraform Cloud

S3 + DynamoDB

State Storage

Managed by HashiCorp

Self-managed (S3)

State Locking

Automatic

DynamoDB required

Collaboration

Built-in UI, VCS integration

Needs CI/CD setup

Policy as Code

Sentinel policies

Use OPA/third-party

Audit & History

Built-in

Need S3 versioning/CloudTrail

Cost

Paid for teams (Free for personal)

S3+DynamoDB (cheap)

Adoption

Easier for enterprises new to Terraform

Preferred by AWS-heavy enterprises


🔑 What Enterprises Actually Do

  • Small teams / startups → use .tfvars files or workspaces.

  • Mature enterprises → use separate state backends + Git repos per env, often with Terraform Cloud or S3+DynamoDB.

  • Hybrid → modules are shared, but envs (dev/stage/prod) are completely isolated in terms of state and pipelines.


Best Practice (for your SRE/DevOps setup):

  • Use shared modules (networking/, eks/, iam/).

  • Keep separate states per environment (dev, stage, prod) → either in Terraform Cloud workspaces OR in S3+DynamoDB with prefixes.

  • Drive everything from Git + CI/CD pipelines → no manual terraform apply in prod.


👉 Do you want me to sketch a sample enterprise folder structure (modules + envs + backend configs) that big companies use, so you can copy it as a reference for your projects?

chevron-rightWhere to store state s3 vs tf cloudhashtag

Great one 👌 This is exactly the kind of decision enterprises debate when standardizing Terraform. Both S3+DynamoDB and Terraform Cloud are valid options, but they serve different needs.


🔹 Option 1: S3 + DynamoDB (Self-Managed Remote State)

  • Where state lives → S3 bucket.

  • How locking works → DynamoDB table.

  • Setup:

    terraform {
      backend "s3" {
        bucket         = "my-tf-states"
        key            = "networking/dev/terraform.tfstate"
        region         = "us-east-1"
        dynamodb_table = "terraform-locks"
      }
    }

Pros

  • Cheap (literally cents/month for S3 + DynamoDB).

  • Full control (you own data, audit via CloudTrail).

  • Well-integrated with AWS-heavy enterprises.

  • Easy to scale across many environments.

Cons

  • You must manage backend setup (S3 bucket policies, DynamoDB locks, versioning).

  • No native UI for state/history → you rely on S3 versioning.

  • No built-in RBAC (access controlled via IAM).

  • Need CI/CD integration manually.


🔹 Option 2: Terraform Cloud (Managed Remote State)

  • Where state lives → HashiCorp’s managed service.

  • How locking works → handled automatically.

  • Setup:

    terraform {
      cloud {
        organization = "my-org"
        workspaces {
          name = "dev"
        }
      }
    }

Pros

  • Fully managed (no need to set up S3/DynamoDB).

  • Built-in state management, locking, history, audit logs.

  • Easy collaboration (UI, CLI, API, notifications).

  • Policy enforcement with Sentinel.

  • Native VCS integration (GitHub/GitLab → auto plan/apply).

  • Secret management built-in.

Cons

  • Cost (Free for small, paid for teams at scale).

  • State is stored outside AWS → some enterprises don’t like that.

  • Vendor lock-in (HashiCorp service).

  • If internet/HashiCorp Cloud is down → can block applies (rare, but possible).


🔑 What Enterprises Actually Do

  • AWS-Only Enterprises → usually prefer S3 + DynamoDB, because it keeps everything inside AWS.

  • Multi-Cloud or Compliance-Heavy Teams → often pick Terraform Cloud (or Terraform Enterprise on-prem) for its governance, audit, and collaboration features.

  • Small/Medium Teams → love Terraform Cloud Free/Team edition because it’s simple and “just works.”


✅ My Recommendation for You (Pavan)

Since you:

  • Already work with EKS, automation, CI/CD

  • Want enterprise-ready practices (SRE mindset)

  • Also mentioned Terraform Cloud workspace confusion

👉 If your infra is 100% AWS and you want max control/cost efficiency → go with S3 + DynamoDB. 👉 If you want better collaboration, UI, history, policies, less ops overhead → go with Terraform Cloud.


Would you like me to make a side-by-side setup guide for both (S3 backend + Terraform Cloud backend) so you can literally copy/paste and try both approaches in your EKS project?

chevron-rightLocal vs Cloud workspacehashtag

Nice catch 👍 This is a very common confusion when people first start with Terraform Cloud + local workspaces.

Here’s the deal:


🔹 Workspaces in Local Terraform (CLI)

  • When you run:

    terraform workspace new dev
    terraform workspace list

    → It just creates a local workspace under .terraform/ directory.

  • Each workspace keeps its own state (in local backend or in S3 if configured with workspace_key_prefix).

  • These are local to your machine (or pipeline), not visible in Terraform Cloud.


🔹 Workspaces in Terraform Cloud

  • In Terraform Cloud, a “workspace” means a completely separate state + config execution environment hosted by HashiCorp.

  • You create them via the UI or CLI (terraform login + terraform cloud workspace create).

  • Cloud workspaces are centralized, team-accessible, and locked by Terraform Cloud.


⚠️ What Happens If You Mix Them?

  • If you created a Terraform Cloud workspace (say dev) and then locally run:

    terraform workspace new dev

    → You won’t be using the Cloud workspace. Instead, Terraform will create a local workspace named dev, which is unrelated to the Cloud one.

  • This can cause two different states for the same environment:

    • Cloud: dev (remote state in Terraform Cloud)

    • Local: dev (local state in .terraform/ or S3, depending on your backend config)


🔑 Best Practice

  • Pick one workspace strategy and stick to it:

    • If using Terraform Cloud → manage workspaces in Cloud only. Don’t create local ones.

    • If using S3/DynamoDB → you can use local workspaces to separate states.

  • In Terraform Cloud, environment separation is usually done by creating separate workspaces in Cloud (e.g., dev, stage, prod) rather than using CLI workspaces locally.


✅ Example for Terraform Cloud (with separate workspaces):

terraform {
  cloud {
    organization = "my-org"
    workspaces {
      name = "dev"
    }
  }
}

✅ Example for Local/S3 with workspaces:

terraform {
  backend "s3" {
    bucket = "my-tf-states"
    key    = "app/${terraform.workspace}/terraform.tfstate"
    region = "us-east-1"
    dynamodb_table = "terraform-locks"
  }
}

Here, terraform.workspace (dev, prod, etc.) decides which state file to use.


👉 So Pavan, if you’re already using Terraform Cloud, better to avoid terraform workspace new locally and instead create/manage workspaces in Terraform Cloud UI or CLI.

Do you want me to show you how to map one codebase to multiple Terraform Cloud workspaces (dev/stage/prod) properly so you don’t risk state conflicts?

chevron-rightOther Questionshashtag

Perfect 💯 — I’ll cover the first 20 enterprise-level Terraform + AWS questions with short, crisp answers. Later, I’ll give you the remaining ones.


🔹 Before Moving to Terraform (Planning Stage)

1. Should we use Terraform Open Source, Cloud, or Enterprise?

  • Small teams → OSS

  • Mid-size → Terraform Cloud

  • Large enterprises (compliance-heavy) → Terraform Enterprise

2. Repo structure: monorepo vs multi-repo?

  • Multi-repo per stack/env is common in enterprises; monorepo works for small infra.

3. Multi-account AWS setup?

  • Use AWS Organizations + Control Tower + one Terraform root module per account.

4. Registry modules or custom enterprise modules?

  • Start with Registry modules → later build internal standardized modules.

5. How to enforce tagging standards?

  • Define required tags in modules + policy checks (OPA/Sentinel).

6. Naming conventions for resources?

  • Standardize (e.g., app-env-region-resource). Helps with clarity + cost.

7. Store state in S3+DynamoDB or Terraform Cloud?

  • S3+DynamoDB if AWS-only; Terraform Cloud if you need governance/UI.

8. Use workspaces or separate backends per environment?

  • Separate backends (or Cloud workspaces). Safer for long-lived environments.

9. Who bootstraps the backend?

  • A one-time manual/admin Terraform run (or bootstrap script) creates S3 bucket/DynamoDB/Cloud org.

10. How to secure state files?

  • Enable S3 encryption + restrict IAM access + enable versioning.

11. How to secure IAM credentials for Terraform?

  • Use roles/STS with CI/CD pipelines. No hardcoded keys.

12. How to enforce security best practices?

  • Use Terraform policies + modules with defaults (encryption, logging enabled).

13. Policy-as-code options?

  • Sentinel (Terraform Cloud/Enterprise) or OPA (open source).

14. How to handle secrets?

  • Use AWS Secrets Manager/SSM Parameter Store. Never hardcode.

15. CI/CD integration?

  • Run terraform plan on PR, apply after approval.

16. Manual apply vs pipeline?

  • Best practice → only CI/CD applies. Manual only for break-glass.

17. How to enforce PR reviews?

  • Git policy: all infra changes via PR + plan output in comments.

18. How to manage multiple teams?

  • Split by stacks/modules, separate backends per team. Use IAM for access control.

19. How to detect drift?

  • Run scheduled terraform plan jobs → alert on changes.

20. How to roll back if apply breaks prod?

  • Rollback via Git → previous commit + re-apply. Also enable state versioning in backend.


Would you like me to now continue with Q21–Q35 (after moving to Terraform: drift, scaling, multi-region, compliance, upgrades, costs, etc.) in the same short Q&A format?

Great 👍 Let’s continue with the remaining Q21–Q35 in the same short Q&A style.


🔹 After Moving to Terraform (Operational Stage)

21. How to handle disaster recovery?

  • Rebuild infra from Terraform code + remote state in new region/account.

22. How to manage large state files?

  • Split infra into multiple state files/modules (networking, compute, data).

23. How to organize Terraform for hundreds of AWS accounts?

  • Use AWS Organizations + per-account state files + standardized modules.

24. How to split stacks (networking, compute, security)?

  • Separate repos/backends for each → enables independent updates.

25. How to import existing resources into Terraform?

  • Use terraform import + manually write resource code.

26. How to manage multi-region deployments?

  • Separate state files per region, or parameterize region in modules.

27. Least-privilege IAM for Terraform?

  • Create dedicated IAM roles for Terraform with only needed permissions.

28. How to audit infra changes?

  • Git history + Terraform Cloud logs + S3/DynamoDB versioning.

29. How to rotate AWS credentials in pipelines?

  • Use short-lived STS tokens from IAM roles or AWS SSO.

30. How to enforce tagging for cost allocation?

  • Add required tags in modules + enforce via policy checks.

31. How to handle Terraform version upgrades?

  • Test upgrade in dev → run terraform init -upgrade → roll out per env.

32. Should we use Terragrunt?

  • Yes, if you need DRY structure, dependency management, and multi-env orchestration.

33. How to train developers to use Terraform safely?

  • Give them module-level access, enforce CI/CD, and peer review PRs.

34. What if Registry modules update/break?

  • Pin versions (version = "x.y.z") and test updates in dev first.

35. How to estimate costs before apply?

  • Use terraform plan with cost-estimation tools (Infracost, Terraform Cloud).


✅ That covers Q1–Q35 — the most common questions asked before and after moving to Terraform in AWS enterprises.

👉 Pavan, would you like me to now combine all 35 Q&A into a single enterprise-ready cheat sheet (so you can keep it handy for migration discussions and interviews)?

chevron-rightAfter done with prereqisites - how to starthashtag

Awesome — you’ve got the essentials in place. Here’s a clean, enterprise-style way to modularize VPC, EKS, RDS, and EC2 for two environments (dev, prod) using Terraform OSS with Terraform Cloud (TFC) for state.

I’ll give you:

  1. Repo layout (modules + live)

  2. Terraform Cloud workspace plan

  3. Minimal, production-ready module skeletons

  4. Environment wiring (providers, variables, backends)

  5. End-to-end workflow (local + CI/CD)


1) Repos & Folder Structure

Use a two-repo pattern:

  • infra-modules (pure, reusable modules)

  • infra-live (environment wiring that calls modules)

Why this split?

  • Modules repo stays stable & versioned (tagged releases).

  • Live repo is per-env wiring, easy RBAC, easy blast-radius control.


2) Terraform Cloud Workspaces

Create one workspace per stack per environment:

  • vpc-dev, eks-dev, rds-dev, ec2-dev

  • vpc-prod, eks-prod, rds-prod, ec2-prod

In each live stack directory, pin the workspace:

Important: Don’t use local CLI workspaces. Use TFC workspaces only.


3) Minimal, Production-lean Module Skeletons

3.1 VPC Module (infra-modules/vpc)

variables.tf (essentials)

main.tf (outline)

outputs.tf


3.2 EKS Module (infra-modules/eks)

variables.tf

main.tf (outline; use AWS EKS + IAM + Node groups)

outputs.tf


3.3 RDS Module (infra-modules/rds)

variables.tf

main.tf (outline with subnet group + SG + instance/cluster)


3.4 EC2 Module (infra-modules/ec2)

variables.tf

main.tf


4) Environment Wiring (dev/prod)

4.1 Shared versions/tags (infra-live/global)

versions.tf

tags.tf

4.2 Dev VPC (infra-live/envs/dev/vpc)

main.tf

variables.tf

dev.auto.tfvars

backend.tf

Prod mirrors dev with different CIDRs, tags, and workspace name (vpc-prod).

4.3 Dev EKS (infra-live/envs/dev/eks)

main.tf

variables.tf

dev.auto.tfvars (fill from VPC outputs you copied or inject via TFC variables)

backend.tf → workspace eks-dev.

Alternative: Use Terraform Cloud run tasks/variables to pass VPC outputs to EKS. Avoid hard-coding IDs in files; store them as TFC workspace variables (safest).

4.4 Dev RDS & EC2 stacks

Follow the same pattern:

  • Inputs come from VPC (vpc_id, subnet_ids, SGs).

  • Different backend.tf mapping to rds-dev, ec2-dev.


5) End-to-End Steps

  1. Create TFC workspaces

    • vpc-dev, eks-dev, rds-dev, ec2-dev, and same for prod.

    • Set workspace variables (e.g., AWS_REGION, TF_VAR_*, sensitive DB password, etc.).

    • Configure VCS connection to infra-live or run local CLI with terraform login.

  2. Bootstrap order (dev)

    • vpc-dev: terraform init && terraform apply

    • Put resulting VPC ID + subnet IDs into TFC variables for eks-dev, rds-dev, ec2-dev.

    • eks-dev: apply

    • rds-dev: apply

    • ec2-dev: apply

  3. Repeat for prod with prod values (CIDRs, sizes, versions, instance classes).

  4. Lock module versions

    • Tag modules in infra-modules (e.g., v1.0.0) and reference with ?ref=v1.0.0.

  5. Secrets & creds

    • Never commit passwords/keys. Use TFC sensitive variables for DB passwords, etc.

    • Use AWS SSO/assume-role in CI or TFC_AWS_PROVIDER_AUTH for safe auth.

  6. CI/CD (recommended)

    • On PR: run terraform fmt, validate, and plan (TFC posts plan to PR).

    • On merge to main: apply (requires manual TFC approval for prod).

  7. Tagging & governance

    • Enforce tags via module var.tags + locals.base_tags.

    • Add Sentinel/OPA policies in TFC for guardrails (e.g., encryption required).

  8. Drift & hygiene

    • Schedule nightly plan in TFC for each workspace; alert on drift.

    • Enable destroy protections on prod workspaces.

    • Version-pin providers/TF in versions.tf.


Quick Commands (local runs)


Pro Tips

  • Keep state blast radius small: one workspace per stack per env.

  • Pass cross-stack IDs via TFC variables (or remote state data sources if you must).

  • For EKS, add-ons you’ll likely need next: VPC CNI, CoreDNS, KubeProxy, ALB Controller, Karpenter, Cluster Autoscaler, Metrics Server, EBS CSI (model them as sub-modules later).

  • For RDS prod: enable Performance Insights, backups, deletion protection.

  • For EC2: standardize launch templates, SSM access, and IMDSv2.


If you want, I can drop in ready-to-run files (copy/pasteable main.tf/variables.tf/outputs.tf) for each stack in infra-live and infra-modules customized to your defaults (region, naming, tags).

Last updated