Terraform Cloud is HashiCorp's managed service for infrastructure automation that is engineered to help teams manage infrastructure with Terraform in a collaborative and efficient manner. Terraform Cloud provides a cloud-based platform where users can securely run, manage, and collaborate on Terraform workflows. Unlike the open-source version of Terraform, Terraform Cloud simplifies the management of infrastructure by offering a hosted environment for IaC, leaving engineers free from local execution environments or infrastructure automation tooling.
The importance of Infrastructure as Code is that it makes possible automation, ensuring the infrastructure gets deployed faster and in a more reliable manner. Codifying infrastructure means that a team can manage, version, and replicate environments consistently across development, testing, and production. With IaC, human error becomes minimal since standardized configurations make repeatability a success. It's better to collaborate, since code can be reviewed, tested, and stored in version control. That way, IaC is likely to add the scalability aspect since it provides for the dynamic provisioning of infrastructure according to demand, thus utilising the resources more properly.
Over the last decade, infrastructure has shifted from static assets to programmable resources managed as code. Most organizations now use Infrastructure as Code, but operating Terraform securely at scale is hard – state management, access control, drift, and policy enforcement all become real challenges.
What Is Terraform Cloud
Terraform Cloud, now HCP Terraform, is HashiCorp's managed platform for running Terraform with remote execution, collaboration, and governance built in. It adds Terraform automation features like workspace-based workflows, policy enforcement, drift detection, private networking via agents, and integrations through run tasks.
Terraform Cloud is a managed service platform designed to streamline and enhance the use of Terraform in collaborative, team-oriented environments. It extends the core capabilities of the Terraform CLI by offering features like remote state storage, team access control, versioned state files, and integration with CI/CD pipelines.
Terraform Cloud is used to enhance collaboration between developers and DevOps engineers, simplify your workflow and improve security overall around the product.
Terraform Cloud provides a platform for remote state management, collaboration, and CI/CD pipelines for Terraform deployments. The design reduces manual overhead over infrastructure updates and management.
Key Features of Terraform Cloud
Terraform Cloud enables teams to store their state files remotely making them secure and centralised.
The platform adds significant capabilities beyond the open-source Terraform CLI.
| Feature Category | Capability |
|---|---|
| Remote State Management | Remote state storage, versioned state files, secure centralised state |
| Collaboration | Team access control, workspace-based workflows, VCS integration |
| Governance | Policy as Code with Sentinel, policy enforcement, drift detection |
| Cost Management | Cost estimation feature within the product before applying a plan |
| Module Management | Private Module Registry for creating and using private modules |
| Notifications | Notification and Monitoring via Slack and email integrations |
Policy as Code with Sentinel: Terraform Cloud comes with Sentinel, the policy-as-code framework. This ensures that infrastructure adheres to security, compliance, and operational guidelines. Policies can be written and enforced to stop unauthorized changes.
Cost Estimation: Among its unique features is the cost estimation feature directly within the product in Terraform Cloud. Before applying a plan by Terraform, users can get an estimate of the cost of the infrastructure resources they are provisioning to effectively manage their budgets on the cloud.
Private Module Registry: In Terraform Cloud, teams have the capability to create and use private modules that standardize and simplify infrastructure deployments. These modules reduce duplication of code and improve maintainability.
Notification and Monitoring: The teams receive notifications on infrastructure runs, failures, as well as status updates via Slack and email integrations. It keeps everyone informed in real time.
Workspaces and Core Workflow
Workspaces are the building blocks of Terraform Cloud.
Terraform Cloud offers workspaces to maintain different environments for a project.
How using Terraform Cloud works:
- Create Workspaces: A workspace can be formed as an environment or a project. Workspaces apply Terraform configurations and store state within.
- Connect the VCS Repositories: Have plans automatically triggered and applied with a link to your VCS repository.
- Plan and Apply: Terraform Cloud automatically runs terraform plan to present the proposed changes and automatically receives approval before applying.
- Monitor and Manage State: State files are automatically saved and managed and monitored via the workspace, and infrastructures are updated automatically.
Workspaces are the building blocks of Terraform Cloud.
| Workflow Step | Description |
|---|---|
| Create Workspaces | Formed as an environment or project, apply configurations and store state |
| Connect VCS | Link to repository for automatic plan and apply triggers |
| Plan and Apply | Automatic terraform plan presentation and approval before terraform apply |
| Monitor State | Automatic state saving and monitoring via workspace |
Terraform Cloud vs Terraform Enterprise
The main difference between Terraform Cloud and Terraform Enterprise is that Terraform Cloud is a SaaS product by Hashicorp, while Terraform Enterprise is a self-hosted and self-managed solution.
Terraform Cloud vs Terraform Enterprise comparison:
| Aspect | Terraform Cloud | Terraform Enterprise |
|---|---|---|
| Deployment Model | SaaS product by Hashicorp | Self-hosted and self-managed solution |
| Management | Managed service | Self managed |
| Execution | Remote execution in cloud | On-premises execution |
Benefits of Terraform Cloud for Organizations
Benefits of Terraform Cloud for organizations include scalability, security, and collaboration.
- Scalability: Zero setup allows teams to manage at scale. Hundreds, thousands, or tens of thousands of resources have their complexity abstracted, and provisioning and controlling change across multiple environments are automated by Terraform Cloud.
- Security: It offers greater security over the traditional configuration within a local setup in the management of sensitive information, with encryption and controlled access policies through secret management.
- Collaboration: It provides a platform of an effective working team in combination with managing the infrastructure
Terraform Cloud is used to enhance collaboration between developers and DevOps engineers, simplify your workflow and improve security overall around the product.
Terraform Cloud Workflows and Collaboration
Terraform Cloud extends the core capabilities of the Terraform CLI by offering features like remote state storage, team access control, versioned state files, and integration with CI/CD pipelines.
One of the most popular IaC tools is Terraform and one of the platforms that helps manage your Terraform code is Terraform Cloud, now integrated into HashiCorp Cloud Platform as HCP Terraform.
Spacelift is an alternative for orchestrating Terraform/OpenTofu workflows with policy as code, visibility, and governance outside Terraform Cloud.
Installing and Configuring Terraform for Use with Cloud
This page describes the steps to install Terraform for Google Cloud in Cloud Shell and in a local shell. Cloud Shell is an interactive shell environment for Google Cloud that lets you learn and experiment with Google Cloud and manage your projects and resources from your web browser.
Cloud Shell
To use an online terminal with the gcloud CLI and Terraform already set up, activate Cloud Shell:
At the bottom of this page, a Cloud Shell session starts and displays a command-line prompt. It can take a few seconds for the session to initialize.
Run the following command to verify that Terraform is available:
bash
terraform
The output should be similar to the following:
Usage: terraform [global options] <subcommand> [args] The available commands for execution are listed below. The primary workflow commands are given first, followed by less common or more advanced commands
For a introductory guide to using Terraform with Google Cloud, see the Terraform for Google Cloud Quickstart.
Terraform Cloud Features Overview
The article coverage includes:
- What is Terraform Cloud?
- Terraform Cloud features
- Terraform vs Terraform Cloud
- Terraform Cloud vs Terraform Enterprise
- Terraform Cloud benefits
- Terraform Cloud cost
- How to create a Terraform Cloud account
- Terraform Cloud workflows
- Terraform Cloud getting started
- Publishing a module to the private registry with Terraform Cloud
- Terraform Cloud alternative
Terraform Cloud features list:
- Workspaces
- Remote state management
- Collaboration and team access control
- Versioned state files
- CI/CD integration
- Policy as Code with Sentinel
- Cost estimation
- Private Module Registry
- Notification and monitoring
Conclusion
Terraform Cloud provides a cloud-based platform where users can securely run, manage, and collaborate on Terraform workflows. The platform addresses the real challenges of operating Terraform securely at scale: state management, access control, drift, and policy enforcement.
The managed service removes the need for local execution environments and infrastructure automation tooling overhead. Remote State Management enables teams to store their state files remotely making them secure and centralised. Policy as Code with Sentinel ensures infrastructure adheres to security, compliance, and operational guidelines. Cost Estimation provides visibility before apply. Private Module Registry standardizes deployments.
Workspaces serve as the building blocks for maintaining different environments for a project. Create Workspaces, Connect the VCS Repositories, Plan and Apply, and Monitor and Manage State form the operational loop. Benefits include scalability with zero setup, security with encryption and controlled access policies through secret management, and collaboration for effective team working.
Terraform Cloud is a SaaS product by Hashicorp, while Terraform Enterprise is a self-hosted and self-managed solution. Terraform Cloud, now integrated into HashiCorp Cloud Platform as HCP Terraform, adds Terraform automation features like workspace-based workflows, policy enforcement, drift detection, private networking via agents, and integrations through run tasks.
For Google Cloud users, Cloud Shell provides an interactive shell environment with gcloud CLI and Terraform already set up. Verification is done via the terraform command.
The platform streamlines and enhances the use of Terraform in collaborative, team-oriented environments, extending the core capabilities of the Terraform CLI with remote state storage, team access control, versioned state files, and integration with CI/CD pipelines.