Z ‐ CREATE VM IN AZURE USING TERRAFORM - SanjeevOCI/Ocidocs GitHub Wiki

No, Azure Cloud Shell is not mandatory to create a Virtual Machine (VM) using Terraform in Azure. You can use any environment where Terraform is installed and authenticated with Azure. However, Azure Cloud Shell is a convenient option because it comes pre-installed with Terraform, Azure CLI, and other tools, making it a ready-to-use environment for managing Azure resources.

Options to Create a VM Using Terraform in Azure

1. Using Azure Cloud Shell

  • Why Use Cloud Shell?
    • Pre-installed Terraform and Azure CLI.
    • No need to install or configure tools locally.
    • Direct access to your Azure subscription.
  • Steps:
    1. Open Azure Cloud Shell from the Azure Portal.
    2. Choose Bash or PowerShell (Bash is recommended for Terraform).
    3. Upload your Terraform configuration files (main.tf, variables.tf, etc.) to the Cloud Shell environment.
    4. Run the Terraform commands: 
      terraform init
terraform plan
terraform apply

2. Using Local Machine

  • Why Use a Local Machine?
    • Full control over the environment.
    • Useful for integrating Terraform with version control systems like Git.
  • Steps:
    1. Install Terraform on your local machine from Terraform's official website.
    2. Install the Azure CLI and authenticate: 
      az login
az account set --subscription "<subscription-id>"
    3. Write your Terraform configuration files (main.tf, variables.tf, etc.).
    4. Run the Terraform commands from your terminal: 
      terraform init
terraform plan
terraform apply

3. Using CI/CD Pipelines

  • Why Use CI/CD Pipelines?
    • Automates the deployment process.
    • Useful for managing infrastructure as code in a collaborative environment.
  • Steps:
    1. Use tools like Azure DevOps Pipelines, GitHub Actions, or Jenkins.
    2. Define Terraform steps in the pipeline (e.g., terraform init, terraform apply).
    3. Store Terraform configuration files in a version control system (e.g., GitHub, Azure Repos).
    4. Trigger the pipeline to deploy the VM.

When to Use Azure Cloud Shell?

  • Use Cloud Shell if:

    • You want a quick and ready-to-use environment.
    • You don’t want to install Terraform or Azure CLI locally.
    • You are working directly from the Azure Portal.

  • Use Local Machine or CI/CD Pipelines if:

    • You need more control over the environment.
    • You are working in a team and need version control.
    • You want to automate deployments.

Conclusion

Azure Cloud Shell is a convenient option for creating VMs using Terraform, but it is not mandatory. You can use your local machine or CI/CD pipelines depending on your workflow and requirements.

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Here are the step-by-step instructions to create a Virtual Machine (VM) in Azure using Terraform:

1. Prerequisites

  • Install Terraform: Download and install Terraform from Terraform's official website.
  • Install Azure CLI: Install the Azure CLI to authenticate Terraform with Azure.
  • Azure Subscription: Ensure you have an active Azure subscription.
  • Authenticate with Azure: 
    az login
az account set --subscription "<subscription-id>"

2. Create a Terraform Configuration File

  • Create a directory for your Terraform project and navigate to it: 
    mkdir terraform-azure-vm
cd terraform-azure-vm
  • Create a file named main.tf and define the configuration.

3. Define the Terraform Configuration

Below is an example configuration to create a VM in Azure:

// Step 1: Specify the Azure provider
provider "azurerm" {
  features {}
}

// Step 2: Create a Resource Group
resource "azurerm_resource_group" "example" {
  name     = "example-resources"
  location = "East US"
}

// Step 3: Create a Virtual Network
resource "azurerm_virtual_network" "example" {
  name                = "example-vnet"
  address_space       = ["10.0.0.0/16"]
  location            = azurerm_resource_group.example.location
  resource_group_name = azurerm_resource_group.example.name
}

// Step 4: Create a Subnet
resource "azurerm_subnet" "example" {
  name                 = "example-subnet"
  resource_group_name  = azurerm_resource_group.example.name
  virtual_network_name = azurerm_virtual_network.example.name
  address_prefixes     = ["10.0.1.0/24"]
}

// Step 5: Create a Network Interface
resource "azurerm_network_interface" "example" {
  name                = "example-nic"
  location            = azurerm_resource_group.example.location
  resource_group_name = azurerm_resource_group.example.name

  ip_configuration {
    name                          = "internal"
    subnet_id                     = azurerm_subnet.example.id
    private_ip_address_allocation = "Dynamic"
  }
}

// Step 6: Create a Virtual Machine
resource "azurerm_windows_virtual_machine" "example" {
  name                  = "example-vm"
  resource_group_name   = azurerm_resource_group.example.name
  location              = azurerm_resource_group.example.location
  size                  = "Standard_B2s"
  admin_username        = "azureuser"
  admin_password        = "P@ssw0rd1234!"

  network_interface_ids = [azurerm_network_interface.example.id]

  os_disk {
    caching              = "ReadWrite"
    storage_account_type = "Standard_LRS"
  }

  source_image_reference {
    publisher = "MicrosoftWindowsServer"
    offer     = "WindowsServer"
    sku       = "2019-Datacenter"
    version   = "latest"
  }
}

4. Initialize Terraform

  • Run the following command to initialize Terraform and download the Azure provider: 
    terraform init

5. Validate the Configuration

  • Validate the configuration to ensure there are no syntax errors: 
    terraform validate

6. Plan the Deployment

  • Generate an execution plan to preview the resources Terraform will create: 
    terraform plan

7. Apply the Configuration

  • Apply the configuration to create the VM and associated resources: 
    terraform apply
  • Confirm the prompt by typing yes.

8. Verify the VM in Azure

  • Log in to the Azure Portal and navigate to Resource Groups.
  • Check the resource group (example-resources) to verify the VM and associated resources (e.g., VNet, NIC, etc.) have been created.

9. Clean Up Resources (Optional)

  • To destroy the VM and all associated resources, run: 
    terraform destroy
  • Confirm the prompt by typing yes.

Explanation of Key Components

  1. Provider: Specifies the Azure provider (azurerm) for Terraform.
  2. Resource Group: Logical container for Azure resources.
  3. Virtual Network (VNet): Network for the VM.
  4. Subnet: Subdivision of the VNet.
  5. Network Interface (NIC): Connects the VM to the network.
  6. Virtual Machine: The actual VM resource with OS, size, and credentials.

Best Practices

  • Secure Credentials: Use Azure Key Vault or environment variables to store sensitive data like passwords.
  • Remote State: Store the Terraform state file in Azure Blob Storage for collaboration.
  • Modularize Code: Use Terraform modules to organize reusable components.

This setup creates a basic VM in Azure using Terraform. You can extend it by adding storage, public IPs, or additional configurations as needed.