IBM Buys HashiCorp's Terraform and Vault: The End of Free?

Vault and Terraform just got acquired. Here’s what that means for you—and your budget.

IBM's acquisition of HashiCorp's Terraform and Vault raises major questions about the future of cloud infrastructure. These once-open tools that developers and IT teams have relied on might soon come with strings attached. IBM's past moves show that monetization could be on the horizon, prompting firms to rethink their reliance on these tools and consider alternatives.

About HashiCorp Terraform and Vault

Terraform and Vault are tools used by developers and IT teams to manage cloud infrastructure and keep it secure.

• Terraform builds and manages infrastructure across cloud providers like AWS, Azure, and Google Cloud. It’s what teams use to set up and update servers, databases, and networks using code instead of clicking around in a web console.
• Vault protects sensitive information like passwords, API keys, and encryption keys. It’s often used with Terraform to securely pass these secrets to applications.

Most companies use these tools together because they simplify and automate complex setups, reduce human error, and improve security.

IBM's Acquisition of Terraform and Vault

IBM now owns both HashiCorp Terraform and Vault. This follows IBM’s \$34 billion purchase of Red Hat in 2019, which brought tools like OpenShift into its portfolio. Now, IBM is going deeper into infrastructure and security by taking over these essential HashiCorp tools.

Things to Think About if You Use Vault and Terraform

The tools are still free in their open-source versions. But IBM’s history suggests that could change for features businesses rely on. After acquiring Red Hat, IBM required subscriptions for Red Hat Enterprise Linux. Could Terraform and Vault follow a similar path?

Think about:

• Licensing Costs: Will key features—like Terraform’s workspaces or Vault’s advanced security modules—move to paid-only tiers?
• Support and Updates: Will the open-source versions slow down, leaving the best updates for enterprise customers?
• Integrations: IBM might build Terraform and Vault to work better with their other products, like OpenShift and Watson AI, while making it harder to use them with competing platforms.

Steps to Take if You Use Vault and Terraform

If you’re already using HashiCorp Terraform and Vault, or considering them:

1. Watch for Announcements: IBM will likely start rolling out new enterprise plans and updates. Pay attention to any changes in licensing or support.
2. Review Your Dependencies: If your cloud infrastructure relies heavily on these tools, start thinking about alternatives, like Pulumi for infrastructure or native secrets managers from AWS or Azure.
3. Prepare Your Budget: Free might not stay free. Make sure you’re ready to pay for tools you’re depending on.

The Future of Terraform and Vault

Will IBM keep Terraform and Vault truly free, or will it nudge users into paid plans? No one knows yet, but it’s smart to start planning.

What’s your take? Will you stick with these tools, or look for alternatives? Let me know in the comments.

Mike Vincent is an American software engineer and technology writer based in Los Angeles, California. He engineers cloud platforms and writes about infrastructure technology. His work focuses on AI systems, platform architecture, and DevOps practices.

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Disclaimer: This material is for informational purposes only and is not intended as business, tax, legal, or accounting advice.