How to use Terraform Compliance?

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Infrastructure as code (IAC) has revolutionized the way corporations build and manage their cloud resources. With the rise of cloud computing, the ability to automate the creation and management of cloud resources has become increasingly important. Terraform, an open-source tool, has emerged as one of the most popular tools for IAC. Terraform enables users to define infrastructure as code and automate the deployment of cloud resources across multiple platforms. However, to ensure compliance with security and regulatory requirements, organizations must implement additional controls and configurations to their Terraform code. In this blog, we will explore the concept of Terraform compliance, the benefits of Terraform compliance, and the common compliance rules that can be applied to Terraform code.

What is Terraform Compliance?

Terraform compliance is the practice of applying security and compliance controls to Terraform code. Terraform compliance enables organizations to ensure that their infrastructure is secure and compliant with regulatory requirements. By implementing best practices and using compliance tools, organizations can create a more secure and reliable infrastructure that meets their needs.

Why is Terraform Compliance Important?

Compliance is essential for any organization that handles sensitive data or operates in regulated industries. Forgetting to comply with constraints can result in penalties, legal action, and reputational deterioration. In addition, cybersecurity threats are on the rise, and organizations must take proactive measures to protect their infrastructure from attacks. Terraform compliance can help organizations achieve compliance with regulations, such as PCI-DSS, HIPAA, or SOC 2, and mitigate the risk of cybersecurity threats.

Common Compliance Rules for Terraform

There are several compliance rules that organizations can apply to their Terraform code to ensure compliance with regulatory requirements. Some of the most common compliance rules for Terraform include:

1. Resource Tagging

Resource tagging is the practice of applying metadata to cloud resources. Tags can be used to identify the owner of a resource, the environment in which it operates, and the cost center responsible for its operation. By applying resource tags, organizations can more easily manage their cloud resources and track their usage. Resource tagging is also a requirement for compliance with some regulations, such as PCI-DSS.
An example of resource tagging is

2. IAM Permissions

Identity and Access Management (IAM) permissions are the permissions granted to users or roles to access cloud resources. IAM permissions must be restricted to only those required for specific resources and actions to ensure least privilege access. Organizations must ensure that IAM permissions are properly configured to prevent unauthorized access to cloud resources. IAM permissions are a requirement for compliance with some regulations, such as HIPAA.

IAM Permission example is

3. Encryption

Encryption is the process of encoding data to protect it from unauthorized access. Data at rest and in transit must be encrypted using appropriate encryption algorithms and keys. Organizations must ensure that encryption is properly configured for their cloud resources to protect sensitive data. Encryption is a requirement for compliance with some regulations, such as GDPR.

Encryption example

4. Audit Logging

Audit logging is the practice of recording all activity related to cloud resources. Audit logs must be retained for a certain period of time to enable organizations to trace and investigate any unauthorized activity. Organizations must ensure that audit logging is properly configured for their cloud resources to comply with regulatory requirements. Audit logging is a requirement for compliance with some regulations, such as SOC 2.

Audit log Example

5. Network Segmentation

Network segmentation is the practice of separating networks into smaller segments to reduce the attack surface. Organizations must ensure that their cloud resources are deployed in segregated networks, with proper firewall rules and network access controls. Network segmentation is a requirement for compliance with some regulations, such as PCI-DSS.

6. Compliance Reporting

Compliance reporting is the practice of generating compliance reports to demonstrate that an organization’s infrastructure is compliant with applicable regulations and standards. Organizations must ensure that they can produce compliance reports on

Infrastructure as code (IAC) has revolutionized the way organizations build and manage their cloud resources. With the rise of cloud computing, the ability to automate the creation and management of cloud resources has become increasingly important. Terraform, an open-source tool, has emerged as one of the most popular tools for IAC. Terraform enables users to define infrastructure as code and automate the deployment of cloud resources across multiple platforms. However, to ensure compliance with security and regulatory requirements, organizations must implement additional controls and configurations to their Terraform code. In this blog, we will explore the concept of Terraform compliance, the benefits of Terraform compliance, and the common compliance rules that can be applied to Terraform code.

Here is an example of using Azure Policy to ensure that all virtual machines in a subscription are encrypted with Azure Disk Encryption:

For more details get in touch with Rahul Miglani at Rahul.Miglani@NashTechglobal.com

Written by 

Rahul Miglani is Vice President at Knoldus and heads the DevOps Practice. He is a DevOps evangelist with a keen focus to build deep relationships with senior technical individuals as well as pre-sales from customers all over the globe to enable them to be DevOps and cloud advocates and help them achieve their automation journey. He also acts as a technical liaison between customers, service engineering teams, and the DevOps community as a whole. Rahul works with customers with the goal of making them solid references on the Cloud container services platforms and also participates as a thought leader in the docker, Kubernetes, container, cloud, and DevOps community. His proficiency includes rich experience in highly optimized, highly available architectural decision-making with an inclination towards logging, monitoring, security, governance, and visualization.