August 11, 2023

Update regarding licensing changes to Terraform

Sebastian Stadil

On August 10th, 2023 the decision was made by HashiCorp to change the licensing on all products to BSL 1.1, which is highly restrictive and contrary to their previous statements regarding their commitment to Open Source 

What does this mean for Scalr customers? 

The language of their new license as well as the FAQ is vague, but based on what we know, Terraform versions 1.5.5 and lower will continue to operate under the MPL license, which means you can continue to use these versions in Scalr. We will continue to explore all avenues available to us as we move forward, building the best Terraform Automation and Collaboration Software possible.

What does this mean for the community as a whole? 

While Hashi is fully in their rights to do this, we believe this, as well as their recent pricing changes, has made their business practices appear disingenuous. As we mentioned back in 2021, we believe in competition as it leads to healthier community outcomes & better products . We also continue to believe in open standards, independent software foundations, and transparency to serve our customers and community better. 

What's next? 

There are a number of initiatives underway to bring clarity and long term assurances to our customers and the community at large.  The next  announcement will be made in the next few days. As always if you have any questions don’t hesitate to reach out at

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