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Shankar's answer is excellent but just to add to that, you might also want to read my blog post about how orchestration and configuration management relate to each other.

Basically Heat is an orchestration tool for all of the infrastructure that OpenStack provides - not only servers, but volumes, networks, floating IPs, Swift containers, Trove databases, Marconi queues, and so on.

Configuration management tools like Puppet and Chef are more about the software side. They often allow you to spin up servers to run it on as well, but they generally don't manage the other services that OpenStack offers.

You can, and in many cases should, use both types of tools together. There are also valid strategies for deploying some applications using Heat alone. The choice is up to you, and depends on your particular application.