Terraform and Azure: Best practices for deploying Azure resources with Terraform

Are you a cloud developer looking to streamline your deployment process? Look no further! Terraform and Azure are the perfect pairing for efficient and cost-effective cloud deployment. Terraform is a popular Infrastructure as Code (IaC) tool that enables the creation and management of cloud infrastructure using declarative code. Azure is a leading cloud service provider that offers a wide range of cloud-based solutions. Together, Terraform and Azure can help you quickly and easily deploy Azure resources with ease. In this article, we will discuss the best practices for deploying Azure resources with Terraform.


Before we dive into the best practices, let's first cover some prerequisites. To get started with Terraform and Azure, you will need the following:

Best Practices

Now that we have covered the prerequisites, let's dive into the best practices for deploying Azure resources with Terraform:

1. Modularize Your Terraform Code

Modularization is a fundamental best practice in Terraform development. Modularizing your Terraform code means breaking it up into small, reusable modules. This approach has many benefits, including simplicity, reusability, and maintainability.

When using Terraform modules, you can easily create reusable code snippets that can be used across multiple projects. This not only saves development time but also ensures consistency across all your Terraform projects. Additionally, modularization reduces the risk of errors and makes it easier to update specific parts of your infrastructure.

2. Separate Configuration from Code

Another best practice is to separate configuration from code. This means that you should store your configuration files separately from your Terraform code. By separating configuration from code, you can easily manage environment-specific configuration without modifying your Terraform code.

In Terraform, you can use variables to separate your configuration files from your code. Variables are placeholders that you can substitute with values during execution. You can define variables in separate files, and then use those files for multiple projects.

3. Use Resource Tags

Using resource tags is another best practice when deploying Azure resources with Terraform. Tags are metadata that you can assign to your Azure resources. You can use tags to categorize resources, track costs, and automate resource management.

In Terraform, you can assign tags to resources using the tags parameter. By adding tags to your Azure resources, you can easily track resource usage and cost. Additionally, tags help to organize and manage resources across multiple environments.

4. Version Control Your Terraform Code

Another best practice is to version control your Terraform code. Version control helps you to track changes to your infrastructure over time. You can use version control systems like Git to manage your Terraform code.

With version control, you can easily collaborate with others on your Terraform project. Additionally, version control systems allow you to revert to previous versions of your code if something goes wrong during deployment.

5. Plan and Apply Changes

Before deploying your Azure resources, it's important to review the changes and verify that they are correct. Terraform provides a preview feature that allows you to see the changes that will be applied before you actually apply them.

To preview changes, you can use the terraform plan command. This command generates an execution plan that shows which resources will be created, updated, or deleted. You can review this plan to make sure that everything looks correct before deploying.

Once you are ready to deploy your Azure resources, you can use the terraform apply command. This command applies the changes that were generated by the execution plan.

6. Use Terraform Modules from the Terraform Registry

Using Terraform modules from the Terraform Registry is another best practice. The Terraform Registry is a public repository of Terraform modules that you can use in your projects. These modules have been developed and tested by other users and are available for free.

Using modules from the Terraform Registry can save you time and effort. Additionally, these modules are typically more reliable and secure than custom-written modules.

To use a module from the Terraform Registry, add the module to your Terraform configuration file using the module block. You can then reference the module's output values in your resource definitions.

7. Enable Remote State

Last but not least, enabling remote state is a best practice that you should follow when deploying Azure resources with Terraform. Remote state is a feature that allows Terraform to store the state of your infrastructure outside of your local machine.

Storing state remotely has many benefits. First, it makes it easier to work collaboratively on your Terraform project. Additionally, it ensures that your Terraform state is stored securely and can be accessed by team members as needed.

To enable remote state in Terraform, you can use a backend. The backend is responsible for storing the state of your infrastructure. Terraform supports various backends, including Azure Blob Storage, AWS S3, and PostgreSQL.


In conclusion, deploying Azure resources with Terraform can be a powerful tool for cloud developers. By following the best practices outlined above, you can ensure that your deployments are efficient, cost-effective, and secure. Whether you are a seasoned cloud developer or just getting started, Terraform and Azure are valuable tools that can help you streamline your cloud deployment process.

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