Cloud Canvas + Terraform Licensing: FAQ
HashiCorp (now IBM) transitioned Terraform from MPL 2.0 to the Business Source License (BSL) starting with version 1.6. This FAQ explains what that means and how Cloud Canvas remains fully compliant while supporting Terraform-based workflows.
Why There’s No Conflict
Cloud Canvas does not perform activities restricted by MPL 2.0 or BSL 1.1. We generate Terraform configuration and can optionally invoke Terraform CLI; we do not ship, modify, or redistribute Terraform.
| Question | Answer |
|---|---|
| Does Cloud Canvas include or ship Terraform binaries? | ❌ No — users run Terraform themselves or Cloud Canvas invokes it as a CLI tool. |
| Does Cloud Canvas modify Terraform source code? | ❌ No. |
| Does Cloud Canvas embed Terraform as a library? | ❌ No, Cloud Canvas never compiles or packages Terraform code. |
| Does Cloud Canvas re-distribute Terraform? | ❌ No. |
| What does Cloud Canvas generate? | 📝 It only outputs .tf / HCL configuration files. |
Conclusion
- Does not trigger BSL redistribution restrictions
- No special licensing required
- Does not compete with Terraform Cloud or Terraform Enterprise
- Fully compliant under both MPL 2.0 and BSL 1.1
Cloud Canvas users can continue using Terraform safely and confidently.
1. What is the Business Source License (BSL)?
BSL is a source-available license that allows viewing and modifying code but restricts certain commercial uses. After a change date (often four years), the code converts to a more permissive license (Terraform → MPL 2.0).
2. Which Terraform versions use BSL?
Terraform ≤ 1.5.x → MPL 2.0 (open source). Terraform ≥ 1.6.0 → BSL 1.1 (source available with restrictions). Both are supported in Cloud Canvas workflows.
3. Does this licensing change affect Cloud Canvas users?
No. Cloud Canvas does not package, modify, or distribute Terraform. It generates infrastructure templates and may invoke Terraform CLI commands — fully compliant.
4. Is Cloud Canvas allowed to integrate with Terraform?
Yes. Using Terraform as a tool is allowed under BSL. Restrictions target vendors repackaging Terraform as a competing SaaS — which Cloud Canvas does not do.
5. What about Terraform modules and providers?
Modules and providers remain open and usable. You can import modules, generate configurations, and use Terraform Registry resources without violating the license.
6. Does Cloud Canvas automate Terraform actions?
Yes — but automation ≠ redistribution. Cloud Canvas designs IaC, generates .tf files, integrates with CI/CD, executes Terraform CLI, and uses your state backend — all compatible with BSL terms.
7. Can enterprises still use Terraform through Cloud Canvas?
Absolutely. Enterprise workflows like multi-cloud, GitOps, CI/CD, and policy enforcement remain unaffected.
8. Does the Terraform license impose obligations on Cloud Canvas?
No special obligations apply because Cloud Canvas does not ship binaries, modify Terraform, fork Terraform, or redistribute Terraform. We only generate plain-text IaC definitions.
9. Who is impacted by the Terraform license change?
Companies that repackage Terraform as SaaS, compete with Terraform Cloud/Enterprise, distribute modified builds, or embed Terraform as a library. Cloud Canvas does none of these.
10. What is Cloud Canvas’ long-term commitment?
Interoperability, open IaC standards, multi-cloud support, compliance with upstream licenses, and a visual, modern IaC workflow compatible with Terraform and future standards.
Legal Disclaimer
This document is provided for informational purposes only and does not constitute legal advice. Cloud Canvas makes no guarantees regarding the interpretation or application of licensing terms by third parties such as IBM/HashiCorp. For legal or compliance decisions specific to your organization, please consult a qualified attorney.