Terraform
Infrastructure as code — define cloud resources in configuration files, not manual clicks.
Terraform Referral Code & Link
No referral code or link is currently available for Terraform.
Quick Summary
Terraform lets engineering teams define cloud infrastructure (servers, networks, databases) in declarative configuration files rather than manually clicking through cloud provider consoles, making infrastructure changes reviewable, versioned, and repeatable across environments. It works across virtually every major cloud provider, making it a common standard for infrastructure-as-code regardless of which cloud a team uses.
Terraform at a Glance
| Category | Infrastructure as Code Tools |
|---|---|
| Pricing model | Freemium |
| Starting price | $0 (free plan available) |
| Platforms | macOS, Windows, Linux |
| Launched | 2014 |
| Headquarters | San Francisco, California, USA |
| Best for | Infrastructure as code — define cloud resources in configuration files, not manual clicks. |
| Community votes | 401 |
Pros
- Infrastructure changes are version-controlled and reviewable like application code
- Works across virtually every major cloud provider through a large provider ecosystem
- Declarative model means you describe desired end state, not manual step-by-step changes
- Plan command shows exactly what will change before applying, reducing deployment surprises
- Large, mature community with extensive documentation and shared configuration modules
Cons
- Real learning curve for teams without prior infrastructure-as-code experience
- State file management requires careful handling to avoid conflicts in team environments
- 2023 license change to Business Source License has created some community and adoption uncertainty
- Complex configurations across many resources can become difficult to manage without discipline
- Errors in configuration can have significant real-world infrastructure consequences if not carefully reviewed
Terraform Pricing Plans
Official pricing as published by Terraform. Verify current rates before purchasing.
HCP Terraform Standard
Usage-based
- Remote state management
- Team collaboration
- Policy enforcement
Before infrastructure-as-code tools became standard, provisioning cloud infrastructure often meant manually clicking through a cloud provider’s console — a process that’s slow, hard to review, and easy to get subtly wrong in ways that are difficult to track down later. Terraform’s declarative model changed this by treating infrastructure configuration like application code: written in files, versioned in Git, and reviewable before changes take effect.
This review covers Terraform’s declarative infrastructure model, its multi-cloud support, and the 2023 licensing change.
Infrastructure as Versioned Code
Rather than manual console clicks, Terraform configuration files describe the desired end state of infrastructure — this many servers, this network configuration, this database — and Terraform calculates and applies the necessary changes to reach that state, with the configuration itself stored in version control like any other code.
Multi-Cloud Provider Support
Terraform’s provider ecosystem covers virtually every major cloud platform, letting teams use one consistent tool and workflow regardless of which specific cloud (or combination of clouds) they’re provisioning infrastructure on.
The Plan-Before-Apply Workflow
Running terraform plan shows exactly what would change — resources created, modified, or destroyed — before any actual infrastructure changes happen, giving teams a review step that manual console changes don’t naturally provide.
Terraform Pricing Breakdown
Open Source — $0 The full Terraform CLI, community providers, and local state management.
HCP Terraform Standard — usage-based Remote state management, team collaboration, and policy enforcement.
HCP Terraform Plus — Custom pricing Advanced governance, audit logging, and self-hosted agents.
The 2023 License Change
HashiCorp’s shift from Terraform’s original open-source license to the more restrictive Business Source License in 2023 limits certain commercial uses and prompted a community fork (OpenTofu) under the original license terms. Terraform itself remains the dominant tool by usage despite this controversy, though some organizations have evaluated OpenTofu as an alternative specifically over licensing concerns.
Who Should Use Terraform
Engineering and DevOps teams managing cloud infrastructure get version-controlled, reviewable infrastructure changes instead of manual console configuration.
Teams using multiple cloud providers benefit from one consistent tool and workflow across platforms.
Who Should Consider Alternatives
Organizations with specific concerns about the 2023 license change may want to evaluate OpenTofu, the open-source community fork, as an alternative.
Expert Verdict
Terraform established infrastructure-as-code as a standard practice, and its multi-cloud provider support and mature ecosystem remain genuine advantages despite the 2023 licensing controversy. For most teams, it remains the default starting point for infrastructure automation.
International Pricing Notes
HCP Terraform pricing is usage-based in USD with no separate regional pricing tiers published.
Best Alternatives to Terraform
1 alternatives listed. Looking for a Terraform alternative? Here are the top options our community recommends, ranked by popularity and editorial score.
Quick comparison: Terraform vs Pulumi
| Feature | Terraform | Pulumi |
|---|---|---|
| Pricing | Freemium | Freemium |
| Platforms | macOS, Windows, Linux | macOS, Windows, Linux |
| Community votes | 401 | 267 |
Infrastructure as code written in real programming languages, not a custom DSL.
Frequently Asked Questions
Common questions about Terraform, answered by our editorial team.
- Is Terraform still open source?
- Terraform's core CLI remains freely usable, but HashiCorp changed its license in 2023 from the open-source MPL to the more restrictive Business Source License, which limits certain commercial uses (like building a competing managed service). This prompted a community fork called OpenTofu under the original open-source license, though Terraform itself remains the more widely used tool by installed base.
- What is Terraform's 'plan' command?
- Terraform plan shows exactly what changes would be made to infrastructure before actually applying them — which resources would be created, modified, or destroyed — letting teams review and catch mistakes before they affect real, running infrastructure.
- Does Terraform work with AWS, Azure, and Google Cloud?
- Yes, Terraform supports virtually every major cloud provider (AWS, Azure, Google Cloud, and many smaller providers) through its provider ecosystem, making it a common choice for teams wanting one consistent infrastructure-as-code tool regardless of which cloud platform — or multiple platforms — they use.
More Infrastructure as Code Tools Tools
Explore other top-rated tools in the Infrastructure as Code Tools category.
Infrastructure as code written in real programming languages, not a custom DSL.
Trending Right Now
Popular with readers checking out Terraform — across every category, not just Infrastructure as Code Tools.
Figma The collaborative interface design platform used by the world's best product teams. 
Notion The all-in-one workspace for notes, docs, databases, and team collaboration. 
Canva Design anything — presentations, social posts, and marketing materials — without design skills. Disclosure: Some links on this page are referral or affiliate links. When you click them and make a purchase, we may earn a commission at no extra cost to you. This does not influence our editorial ratings or recommendations. All tools are evaluated independently by our team.
Discussion & User Ratings
Used Terraform? Rate it and share your experience — be specific and helpful.
No user ratings yet — be the first to rate Terraform.
Log in to join the discussion.