Retrieving passwords from OCI Vault for use in Terraform

This post is written with the intention to complement the excellent “A comprehensive guide to managing secrets in your Terraform code” by Yevgeniy Brikman. Its aim is to detail how Oracle Cloud Infrastructure Vault (OCI Vault) can be used to securely store credentials and subsequently use them in Terraform scripts.

If you haven’t done so I recommend reading Yevgeni’s post to get some background information as to why storing passwords anywhere in code, even dot-configuration files, is a Truly Bad Idea. This article provides an example for his third technique: using a dedicated secrets store.

Never, ever, store any credentials in code. Just . don’t . do it. It’s disaster waiting to happen

– every security conscious person, always

Standard disclaimer: please be advised that creating cloud resources most likely costs you money, and keeping them running even more so. Don’t create any cloud resources unless you are authorised to spend that money and know about the implications of creating the resources mentioned in this post.

The problem with the Terraform state file

Whilst using OCI Vault for storing and retrieving secrets is without a doubt a great step towards safer code management, there is still an unsolved issue with Terraform: the state file is considered sensitive information by HashiCorp at the time of writing (2022-05-30). When using the local backend (eg the default) passwords and other sensitive information are stored in clear text in a JSON file. Storing sensitive information in clear text is very much counter-productive to the article’s goals. Alternative backends providing encryption at rest are most likely better suited. Please ensure you remain compliant with your IT security department’s policies regarding the Terraform state file.


In this article you can read how to create an Autonomous Database (ADB) instance using a tiny Terraform script. Compared to some other tutorials about the subject you won’t find the ADMIN password provided in the code.

Rather than providing the ADB instance’s ADMIN password as an environment variable, the password is retrieved from an OCI Vault secret and passed to the ADB resource. The ADB instance is just one potential use case for using OCI Vault in Terraform: anywhere secrets need to be used to create/maintain resources, the technique detailed for ADB applies as well.

Secrets in the context of OCI Vault are credentials such as passwords, certificates, SSH keys, or authentication tokens that you use with Oracle Cloud Infrastructure services. An OCI Vault Secret cannot be looked up as such: secrets are wrapped into what’s referred to as a secret bundle. A secret bundle consists of the secret contents, properties of the secret and secret version (such as version number or rotation state), and user-provided contextual metadata for the secret.

To keep this article short-ish, it is assumed that a secret has already been created and its Oracle Cloud Identifier (OCID) is known. The secret’s OCID is passed to the Terraform script via a variable.

An Autonomous Database instance is perfectly suited to demonstrate the use of a Terraform Data Source for looking up vault secrets as it does not require any supporting resources such as Virtual Cloud Networks, or any elaborate network security settings. The Terraform script will create a publicly accessible ADB instance protected by an Access Control List (ACL) allowing only specific IP addresses to connect. Furthermore, mutual TLS is enabled for even stronger security.

Using an OCI Vault Secret

Lookup operations in Terraform are performed using Data Sources. There are data sources for most cloud resources, including the aforementioned secret bundle. Provided the secret’s OCID is passed via a variable, the lookup using an oci_secrets_secretbundle data source could be performed as follows:

data "oci_secrets_secretbundle" "bundle" {

  secret_id = var.secret_ocid

Thankfully the OCI Terraform provider is smart enough to retrieve the current, active version of the secret. Once the secret has been retrieved, it can be used for the creation of an ADB instance. Since secrets are base64 encoded, they have to be decoded before they can be used. The following snippet demonstrates the use of the data source inside the ADB resource:

resource "oci_database_autonomous_database" "demo_adb_21c" {
  compartment_id              = var.compartment_ocid
  db_name                     = "DEMO"
  admin_password              = base64decode(data.oci_secrets_secretbundle.bundle.secret_bundle_content.0.content)
  cpu_core_count              = 1
  data_storage_size_in_tbs    = 1
  db_version                  = "21c"
  db_workload                 = "OLTP"
  display_name                = "ADB Free Tier 21c"
  is_free_tier                = true
  is_mtls_connection_required = true
  ocpu_count                  = 1
  whitelisted_ips             = var.allowed_ip_addresses

A call to terraform plan followed by a terraform apply will initiate the creation of the ADB instance. As long as the admin password complies with the password complexity rules of the ADB resource, the database will be created. Once its lifecycle status changed to running, the database will be accessible to IP addresses specified in var.allowed_addresses (a list of strings). Should you invoke the Terraform script from a Linux shell, this might be a way to set the variable:

$ export TF_VAR_allowed_ip_addresses='[ "", "" ]'
$ terraform plan -out myplan


Using OCI Vault to store sensitive information is a secure way to mitigate against many password-handling problems. The Terraform state file remains a concern, especially when using the local backend as it stores all information in clear text. The IT security department should be consulted as to how this potential security vulnerability should be treated. Other backends than the local backend exist and might suit the IT security team’s needs better.

Once a Vault secret has been looked up, it can be used in any Terraform resource. Referencing data sources should lead to more secure code deployments.

Happy Automating!