HashiCorp's infrastructure as code tool using HCL (HashiCorp Configuration Language). The open-source CLI is free; HCP Terraform (cloud backend) switched to resource-based pricing in 2026 — first 500 managed resources free, then $0.10-$0.99/resource/month. The most widely deployed IaC tool with 4,800+ providers.
Our take
Terraform is the IaC default — 4,800+ providers, decade of community investment, and the widest available talent pool. The 2026 HCL pricing shift (from user-based to resource-based) is fairer for most teams: you pay for what you manage, not how many engineers use the tool. The open-source CLI remains fully free — HCP Terraform is the optional cloud collaboration layer. The OpenTofu fork is growing but lacks Terraform's provider breadth.
Product roadmap
HashiCorp (now IBM-owned) is evolving HCP Terraform toward a full infrastructure lifecycle platform with drift detection, cost optimization, and compliance automation. Stacks (multi-configuration deployments) and AI-assisted plan review are in active development.
Who is Terraform / HCP Terraform for?
Open-source CLI is free, feature-complete, and the industry standard. HCP free tier (500 resources) covers solo cloud infrastructure.
Free CLI plus HCP free tier covers most startup infrastructure needs. Remote state and VCS integration on the free tier are genuinely valuable.
Resource-based HCP pricing is predictable. Policy enforcement and audit logging on Plus tier add the governance layer growing teams need.
Enterprise contracts with IBM/HashiCorp bring volume discounts, dedicated support, and on-premise deployment options for compliance-sensitive environments.
Pricing
Open Source (CLI)
Free- • Full CLI
- • Local state management
- • All providers
- • No user limit
HCP Terraform Free
Free- • 500 managed resources free
- • Remote state
- • VCS integration
- • 5 users
HCP Terraform Plus
$null/mo- • $0.10-$0.99/resource/month
- • Policy enforcement
- • SSO
- • Audit logging
- • Self-hosted agents
Pricing verified 2026-04-16
Ratings
Overall score: 84/100 (composite of the above ratings)
Features
core
advanced
integrations
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vs TemporalFounded: 2012
HQ: San Francisco, CA
Company size: 1,000+
Last updated: 2026-04-16