As a concrete example of what this enables, the Pulumi Automation API lets you embed IaC straight into a bigger program. Folks have used this to create infrastructure-oriented SaaS products, self-service portals, and new higher level abstraction frameworks and tools, for instance, often spanning multiple cloud resource types (AWS, Azure, Kubernetes, Cloudflare, others) -- https://www.pulumi.com/automation/. Transpiling to YAML and handing it over to CloudFormation is clumsy and wouldn't work for these cases among others.
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