Terraform is a multi-cloud infrastructure management solution. It is comparable to ARM templates, the difference being that it also supports Amazon Web Services, Google Cloud Platform, and other clouds. Terraform uses a custom file format for specifying one or more resources to be created using one or more providers. The resources correspond to the cloud resources, and the providers are responsible for knowing how to interact with the APIs of the different vendors.

Optionally, you can use a JSON format instead of the Terraform proprietary format. Terraform also supports the use of modules for creating packages that are reusable components.

Terraform configuration files are executed using command-line interfaces.