Terraform is an Infrastructure as Code (IaC) software tool offered by HashiCorp that facilitates provisioning and managing infrastructure on-premises and in the cloud. It can be easily extended with its plugin-based architecture, allowing it to connect with different infrastructure hosts and achieve complex management scenarios across multiple clouds. Terraform's configuration can be packaged, shared, and reused in the form of Terraform modules. The tool is designed to work with Infrastructure as Code (IaC), which allows you to define and provision your infrastructure with a declarative language, providing consistency, repeatability, and enhanced reliability.