Terraform
by IBM • • Infrastructure as Code (IaC) Tools
Terraform is HashiCorp's infrastructure as code tool, owned by IBM, that provisions AWS, Azure and Google Cloud resources from HCL files for platform teams.
Terraform describes infrastructure in configuration files written in HCL, its own configuration language, and then creates, changes or destroys real resources until they match. Every run starts with an execution plan that lists each create, update and destroy, so a person can review the change before anything is touched. HashiCorp built Terraform, and IBM has owned HashiCorp since the acquisition closed on 27 February 2025. Vault, Consul, Nomad and Packer come from the same company and are sold as separate products. The Terraform CLI, known as Community Edition, runs plan and apply against providers from the Terraform Registry, where HashiCorp maintains the official providers for AWS, Azure and Google Cloud. State can live in a remote backend that locks it during every write, and import blocks bring resources created by hand under management. HCP Terraform, the hosted service, adds remote runs, projects and workspaces, a VCS connection and a private registry for shared modules. Its policy enforcement runs Sentinel or Open Policy Agent checks during runs, and cost estimation adds the expected monthly cost to each run. Health assessments detect drift between live resources and the configuration, and Stacks pass outputs from one deployment to another. Terraform suits platform and DevOps teams that run infrastructure across more than one cloud and want every change reviewed like application code. Platform teams use the private registry and no-code provisioning to hand approved modules to application developers. Organizations with compliance rules rely on policy checks, per-workspace Read, Plan and Write roles, and runs that wait for confirmation before apply. Terraform comes in three editions: the downloadable Community Edition, the hosted HCP Terraform, and Terraform Enterprise for companies that run it on their own infrastructure. A typical change starts as a pull request in GitHub, GitLab, Bitbucket or Azure DevOps. HCP Terraform posts a speculative plan to the request, and a reviewer reads it before the change is merged. Self-hosted agents run those plans inside private networks, using only outbound connections to the hosted service. Teams also schedule auto-destroy on development workspaces and import existing cloud estates so one codebase manages them. Terraform fits engineering groups that want provisioning across AWS, Azure and Google Cloud to run from a reviewed, versioned codebase.
Pricing
View plans-
Terraform Community Edition
Free
- Downloadable command-line tool for provisioning on any cloud provider
- Source available under the Business Source License 1.1, not an open-source license
- Production use excludes offering it hosted or embedded in competition with IBM's paid versions
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HCP Terraform Essentials
$0.10 per month
Billed per managed resource a month from $0.10, rated hourly at $0.00013 per hour
- Starts with a $500 HCP trial credit
- Remote state storage, VCS connection and projects
- Remote runs for plan and apply
- Private registry and team management
- Test-integrated module publishing limited to 10 modules
- No no-code provisioning, module deprecation or change requests
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HCP Terraform Standard
$0.47 per month
Billed per managed resource a month from $0.47, rated hourly at $0.00064 per hour
- Starts with a $500 HCP trial credit
- Everything in Essentials
- Unlimited test-integrated module publishing
- Module deprecation, team notifications and change requests
- No-code provisioning
- Generated module tests, in beta
- HCP Waypoint templates and add-ons
- Health assessments with drift detection
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HCP Terraform Premium
$0.99 per month
Billed per managed resource a month from $0.99, rated hourly at $0.00135 per hour
- Starts with a $500 HCP trial credit
- Everything in Standard
- Module revocation
- HCP Waypoint actions
Features
- Included: Providers for AWS, Azure and Google Cloud
- Included: Execution plan preview before apply
- Included: Remote state with locking
- Included: Drift detection against deployed cloud state
- Included: Private module registry
- Not included: Infrastructure in general-purpose languages
- Included: Policy-as-code checks at plan time
- Included: Pull-request plans from version control
- Included: Cost estimate on each plan
- Included: Import of existing cloud resources
- Not included: Encrypted workspace variables
- Included: Per-workspace access control
- Included: Approval required before apply
- Included: Auto-destroy of temporary environments
- Included: Cross-stack output references
- Included: Self-hosted agents for private networks
- Not included: Open source IaC engine
Additional Features
- HCL configuration language
- Execution plans with terraform plan
- Terraform Registry providers for AWS, Azure and Google Cloud
- Remote state backends with state locking
- Import blocks for existing resources
- HCP Terraform remote runs
- Projects and workspaces
- Private registry for versioned modules
Best for
- Platform teams running infrastructure across AWS, Azure and Google Cloud
- DevOps engineers who review infrastructure changes as pull requests
- Platform teams handing approved modules to application developers
- Organizations that enforce policy checks before infrastructure changes
- Companies that run their infrastructure tooling on their own servers
- Teams provisioning resources inside private networks
- Engineers working from the command line on their own projects
Use cases
- Provisioning multi-cloud infrastructure from code
- Previewing infrastructure changes before applying them
- Running plans on pull requests before merge
- Importing existing cloud resources into managed state
- Sharing versioned modules through a private registry
- Detecting drift between live resources and configuration
- Blocking non-compliant changes with policy checks
- Estimating the monthly cost change of a run
- Tearing down development environments on a schedule
- Letting developers provision approved modules without writing code
- Running Terraform inside a private network with agents
- Self-managing Terraform on company infrastructure
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