Last Updated on August 7, 2025 by Arnav Sharma
1. Master Terraform by using modules for reusability in your codebase.: Organize your infrastructure into modules for reusability. For example, create a module for an Azure Virtual Network that can be reused across different environments.
module “network” {
source = “./modules/network”
location = “West Europe”
address_space = [“10.0.0.0/16”]
}
2. Use automation to leverage Azure Resource Manager (ARM) Templates with Terraform.: Integrate existing ARM templates into Terraform for resources that are not fully supported by Terraform.
resource “azurerm_template_deployment” “arm_template” {
name = “arm-deployment”
resource_group_name = azurerm_resource_group.example.name
template_body = file(“${path.module}/template.json”)
parameters = {
“parameter1” = “value1”
}
}
3. Utilize Terraform workspaces following Terraform best practices to manage different environments within the same codebase.: Use workspaces to manage different environments (like dev, staging, prod) within the same Terraform configuration.
4. As part of Terraform best practices, implement remote state storage using AWS or Azure Blob Storage.: Store Terraform state in Azure Blob Storage to enable team collaboration and prevent conflicts.
terraform {
backend “azurerm” {
storage_account_name = “tfstateaccount”
container_name = “tfstate”
key = “prod.terraform.tfstate”
}
}
5. Use Terraform Data Sources: Utilize data sources to fetch information about existing Azure resources which can be used in your configurations.
data “azurerm_subnet” “example” {
name = “example-subnet”
virtual_network_name = “example-vnet”
resource_group_name = “example-rg”
}
6. Follow Terraform best practices and leverage Azure Managed Identities to handle credentials securely for Azure services.: Use managed identities for Azure resources to securely manage credentials for Azure services.
resource “azurerm_user_assigned_identity” “example” {
resource_group_name = “example-rg”
location = “West Europe”
name = “example-identity”
}
7. In line with Terraform best practices, utilize Terraform output values to share IP addresses and other infrastructure details.: Output values from Terraform can be used to share information about the infrastructure, like public IP addresses.
8. Implement Terraform state locking in your codebase to avoid conflicts when working with a team.: Enable state locking using Azure Blob Storage to prevent conflicts when multiple team members are working on the same Terraform configuration.
9. Adhere to Terraform best practices by pinning the version of your Azure provider in your codebase.: Always pin the version of your Azure provider to avoid unexpected changes due to provider updates.
terraform {
required_providers {
azurerm = {
source = “hashicorp/azurerm”
version = “=2.26.0”
}
}
}
10. Incorporate automation and implement Azure DevOps to automate Terraform.: Integrate Terraform with Azure DevOps pipelines for automated testing and deployment.
11. Use Azure Policy with Terraform: Enforce organizational standards and assess compliance across your Azure resources with Azure Policy.
resource “azurerm_policy_assignment” “example” {
name = “example-policy-assignment”
policy_definition_id = azurerm_policy_definition.example.id
scope = azurerm_resource_group.example.id
}
12. Incorporate Terraform Linting Tools: Use linting tools like tflint to catch errors in your Terraform configurations.
13. Leverage Terraform Cloud for Collaboration: Use Terraform Cloud for enhanced team collaboration features and remote operations.
14. Utilize Conditional Expressions: Use conditional expressions in Terraform to create resources conditionally based on input variables.
15. Implement Fine-Grained Access Control: Use Azure Role-Based Access Control (RBAC) with Terraform to manage who has what permissions to your Azure resources.
16. Use Azure Service Principals with Terraform: Authenticate Terraform with Azure using Service Principals for automated workflows.
17. Leverage Azure Tags in Terraform: Use tags in Terraform to organize and manage Azure resources effectively.
resource “azurerm_resource_group” “example” {
name = “example-resources”
location = “West Europe”
tags = {
Environment = “Production”
}
}
18. Optimize Terraform Performance: Use terraform plan -out to save the execution plan and speed up terraform apply.
19. Implement Terraform Backend Configurations: Configure backends like AzureRM for efficient state management and operations.
20. Use Terraform Dynamic Blocks: Dynamic blocks in Terraform can simplify configurations by dynamically constructing repeated nested configuration blocks.
21. Secure Sensitive Data in Terraform: Use Azure Key Vault in conjunction with Terraform to manage and access sensitive information securely.
22. Automate Cost Estimates with Infracost: Use Infracost with Terraform to get a cost estimate of your Azure infrastructure before deploying.
23. Integrate Terraform with Azure Monitoring Tools: Send Terraform logs to Azure Monitor for better visibility and troubleshooting.
24. Leverage Azure Functions with Terraform: Manage Azure Functions with Terraform for serverless computing solutions.
25. Use Resource Dependencies Wisely: Explicitly define dependencies between Azure resources in Terraform to ensure proper creation and destruction order.
26. Optimize Terraform Variables: Use variable validation in Terraform to enforce input constraints and improve configuration usability.
27. Implement Error Handling and Retry Logic: Add error handling and retry logic for Azure resource provisioning in Terraform.
28. Organize Terraform Configurations: Structure your Terraform configurations with clear naming conventions and logical grouping for better maintainability.
29. Use Terraform for Azure Kubernetes Service (AKS): Manage AKS with Terraform for consistent and repeatable Kubernetes deployments.
30. Regularly Review and Update Terraform Configurations: Keep your Terraform configurations up-to-date with the latest Azure features and best practices.