What is Infrastructure as Code (IaC)?
Infrastructure as Code (IaC) means describing IT infrastructure such as servers, networks and databases in text files instead of configuring it by hand. Tools such as Terraform or Ansible then build the environment automatically, traceably and as often as needed in an identical way.

Infrastructure as Code: definition
Traditionally, administrators set up servers by hand: install, configure, note down the settings—or not. The result is hard to reproduce, and knowledge sits in the heads of individuals. Infrastructure as Code instead describes the desired setup in files that are maintained like program code.
These files live in a version control system such as Git, are reviewed and are executed by automation. Every change is thus documented, traceable and, if needed, reversible. Infrastructure becomes part of software development and can be built into DevOps workflows and CI/CD pipelines.
How IaC works and which tools exist
Declarative tools such as Terraform and its open-source fork OpenTofu describe the target state: “one network, two servers, one database.” The tool compares it with the actual state and makes only the necessary changes. Cloud-native solutions such as AWS CloudFormation work on the same principle.
Configuration management tools such as Ansible, by contrast, set up software and settings on existing servers. In practice the two are combined: first the infrastructure is created, then the configuration. Credentials do not belong in the code but in a secure system for managing secrets.
Real-world example: an IT systems house with identical customer environments
An IT systems house builds the same environment for several customers: web servers, database, backup and monitoring. Setup used to take several days, and small differences later led to errors that were hard to explain. In addition, there was no reliable documentation of the setup after outages, so every recovery started from scratch.
With Infrastructure as Code, a new customer environment is created by running reviewed code, in hours instead of days and always identical. Test environments can be generated from the same template and deleted again after testing. After an outage, the environment is rebuilt from the code, and the data comes from the backup.
Benefits, limits and common mistakes
IaC saves time, reduces errors, creates documentation and makes recovery and audits easier. The learning curve takes effort, though, and new risks arise: an error in the code can delete entire environments, the state must be managed securely, and manual changes to the running environment lead to deviations (drift).
Nano Concepts introduces Infrastructure as Code into your cloud and server environments, writes and reviews the code, builds it into your deployment processes and trains your team—so that environments stay reproducible and changes stay traceable, even when staff change.
- Version code in Git and review changes before execution
- Never store credentials and keys in the code
- Avoid manual changes to production systems
- Create test and production environments from the same template
- Back up state files and restrict access to them
Frequently asked questions about Infrastructure as Code (IaC)
Terraform creates infrastructure, such as servers, networks and databases at a cloud provider. Ansible then configures the systems: installing software, setting up services, applying settings. The two tools complement each other and are often used together.
With a single server, often not. As soon as you run several environments such as test and production, regularly rebuild systems or do not want knowledge to depend on one person, IaC quickly pays off. A service provider can also use it for you.
Drift occurs when the running environment deviates from the code that describes it, for example because someone changed a setting directly on the server. Documentation and reality then no longer match. Regular comparisons and the rule to make changes only through the code prevent it.
No, but it is an important building block. DevOps describes the cooperation of development and operations with automated workflows. IaC provides the automated, versioned infrastructure into which testing and delivery (CI/CD) can be integrated.
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