Microsoft Entra ID vs Terraform / HCP Terraform: Full Comparison (2026)

Pricing, features, scores, and a clear verdict on which one is right for you.

The bottom line

Microsoft Entra ID positions itself as "microsoft entra id" while Terraform / HCP Terraform goes after "infrastructure as code with hcl" — so the right pick depends on which problem you're actually solving. Both use freemium pricing, but Microsoft Entra ID charges per seat while Terraform / HCP Terraform charges per resource — a meaningful difference for larger teams.

At a glance

	Microsoft Entra ID	Terraform / HCP Terraform
Our score	84/100	84/100
Starting price	Free	Free
Free tier	Yes	Yes
Best for	Microsoft Entra ID	Infrastructure as code with HCL

Pricing comparison

Microsoft Entra ID

Free tier available

FreeFree

P1$6/mo

P2$9/mo

Pricing verified 2026-04-16

Terraform / HCP Terraform

Free tier available

Open Source (CLI)Free

HCP Terraform FreeFree

HCP Terraform Plus$null/mo

Pricing verified 2026-04-16

Calculate your cost

How many developers?10

1500

Microsoft Entra IDCustom

Contact sales

Contact sales — exceeds available plans

Terraform / HCP TerraformUnknown

Contact sales

Try Microsoft Entra ID free →Try Terraform / HCP Terraform free →

Feature comparison

core

Feature	Microsoft Entra ID	Terraform / HCP Terraform
SSO	Yes	No
MFA	Yes	No
Conditional Access	Yes	No
SCIM provisioning	Yes	No
Azure app integration	Yes	No
HCL configuration	No	Yes
State management	No	Yes
Plan/apply workflow	No	Yes
Modules	No	Yes
Provider ecosystem	No	Yes

advanced

Feature	Microsoft Entra ID	Terraform / HCP Terraform
Identity Protection	Yes	No
Privileged Identity Management	Yes	No
Access reviews	Yes	No
Verified ID	Yes	No
Workload identity	Yes	No
Remote execution	No	HCP+
Policy as code (Sentinel)	No	HCP Plus+
Drift detection	No	HCP Plus+
Cost estimation	No	HCP Plus+
Self-hosted agents	No	HCP Plus+

integrations

Feature	Microsoft Entra ID	Terraform / HCP Terraform
Microsoft 365	Yes	No
Azure	Yes	Yes
Salesforce	Yes	No
AWS	Yes	Yes
Okta	Yes	No
GCP	No	Yes
Kubernetes	No	Yes
GitHub	No	Yes
GitLab	No	Yes

Ratings breakdown

Microsoft Entra ID

Ease of use

7/10

Value for money

10/10

Features

9/10

Support

8/10

Terraform / HCP Terraform

Ease of use

6/10

Value for money

8/10

Features

9/10

Support

7/10

What the data tells us

Key capabilities you'd miss

Choosing Microsoft Entra ID means going without HCL configuration, State management, Plan/apply workflow (which Terraform / HCP Terraform offers). Choosing Terraform / HCP Terraform means losing SSO, MFA, Conditional Access. These are the features that typically drive the final decision — check whether your workflow depends on any of them before committing.

What company size tells you

Microsoft Entra ID (10000+ employees) has the engineering bench to ship features across many fronts but may iterate slower on individual requests. Terraform / HCP Terraform (1,000+ employees) typically ships faster on its core product but may lag on peripheral features. Consider which matters more for your roadmap.

Choose Microsoft Entra ID if...

You want a free tier to get started
You value powerful features over simplicity
Getting strong value for money is a priority

Try Microsoft Entra ID free →

Choose Terraform / HCP Terraform if...

You want a free tier to get started
You value powerful features over simplicity
Getting strong value for money is a priority

Try Terraform / HCP Terraform free →

Frequently asked questions

Is Microsoft Entra ID or Terraform / HCP Terraform better?

Microsoft Entra ID scores 84/100 compared to Terraform / HCP Terraform's 84/100 on VendorVS. However, the best choice depends on your needs — Microsoft Entra ID excels at ease of use (7/10) while Terraform / HCP Terraform scores 6/10.

How much does Microsoft Entra ID cost compared to Terraform / HCP Terraform?

Microsoft Entra ID starts at free (free tier available). Terraform / HCP Terraform starts at free (free tier available). Microsoft Entra ID is the more affordable option.

Does Microsoft Entra ID or Terraform / HCP Terraform have a free plan?

Yes, both Microsoft Entra ID and Terraform / HCP Terraform offer free tiers, so you can try each before committing to a paid plan.

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