CloudFormation:

• AWS-native service, deeply integrated with AWS APIs
• Uses JSON or YAML templates
• State management handled by AWS
• No additional cost (only pay for AWS resources created)
• Eventually consistent with AWS service updates
• Limited to AWS ecosystem
  Terraform:
• Third-party tool supporting multiple cloud providers
• Uses HCL (HashiCorp Configuration Language)
• Requires state file management
• Licensed software with enterprise features
• Often gets new provider features faster
• Multi-cloud support
  When to choose CloudFormation:
• Pure AWS environments
• Teams already invested in AWS ecosystem
• Want AWS-managed state and lifecycle
• Need deep integration with AWS services