Infrastructure automation is no longer a nice-to-have. For teams managing cloud environments at scale, the tooling you choose to orchestrate Terraform can shape lots of things, from release speed, automation cost structure, and your ability to enforce policy and governance.

Most teams evaluating infrastructure automation today end up comparing HashiCorp's Terraform Cloud against newer GitOps-native tools like Terrateam. While both aim to simplify Terraform workflows, they differ drastically in how they integrate with your existing toolchain, how they scale with your org, and how much they cost you as you grow.

This guide compares Terraform Cloud and Terrateam across architecture, pricing, workflow flexibility, and use case fit, so you can make the right decision for your team.

1. Cost Model: Predictable vs. Variable

	Terrateam	Terraform Cloud
Pricing model	Flat pricing (by seat or fixed usage tiers)	Consumption-based (resource hours)
OSS core	Yes (MPL-2.0)	No (closed-source)
Free tier	Generous (all features)	Up to 500 resources, then pay-per-resource-hour
Self-hosting	Fully supported (OSS free)	Requires Terraform Enterprise (separate product)
Private runners	Unlimited free forever	Pay for each private runner (hidden cost)

Terraform Cloud recently switched to a resource-based pricing model. You pay based on the number of hours each Terraform resource exists in your state, whether or not you're actively changing it. This introduces unpredictable costs, especially for teams managing hundreds or thousands of resources across environments.

Terrateam offers a simpler model: use it open-source, self-hosted, or pay for a managed version with all features. No limits based on resource count. No surprises in your invoice.

2. Architecture: GitHub-Native vs. Web UI + Remote Execution

Terraform Cloud

Pulls your code into its platform, runs Terraform remotely, and shows results in its own UI. You configure workspaces, triggers, variables, and policies inside TFC.

Terrateam

Orchestrates Terraform via GitHub pull requests using GitHub Actions. All automation lives inside your repo and CI. No external web UI required.

Architecture Comparison Diagram

Terrateam doesn't pull your code or credentials into a third-party platform. It runs inside your CI (via GitHub Actions or private runners), using your secrets, your IAM roles, and your GitHub workflows.

3. Workflow Flexibility: Multi-Repo, Tags, Approval Gates

Terrateam is uniquely expressive when it comes to customizing workflows. It was designed for mono-repos, multi-environment IaC, and granular control over plan/apply behavior.

With Terrateam, you can:

Automatically route workflows based on directory + tags (dir:infrastructure/compute, aws and production)
Require different levels of approval per environment
Run custom hooks for drift detection, Slack notifications, Checkov scans, or Infracost
Use GitHub Teams and PR status checks as enforcement gates (no new UI to learn)

Terraform Cloud workflows are defined by workspaces and UI configuration. If you want deep customization (e.g. "only allow applies to prod from staging branch, reviewed by platform team"), you'll likely need Sentinel policies, which add complexity and a learning curve.

4. Use Case Fit: When to Choose

Choose Terrateam if:

You want to enforce GitOps (everything via pull requests)
You work in monorepos with shared modules or complex tagging
You need fine-grained access control based on GitHub users/teams
You want self-hosted automation (e.g., regulated, air-gapped environments)
You're migrating off Terraform Cloud due to cost or flexibility

Choose Terraform Cloud if:

You prefer a managed UI experience for state + runs
Your team is already invested in the HashiCorp stack (Vault, Consul, Sentinel)
You have simpler IaC needs and don't mind a per-resource pricing model

5. Visualizing the Difference

Terrateam GitOps Flow:

Dev opens PR with Terraform change

Terrateam comments with plan

Approvals happen in GitHub (status checks, reviews)

Merge → Terrateam applies

All history stays in GitHub

Terraform Cloud Flow:

Push code → triggers workspace run

Plan/Apply managed in TFC UI

Sentinel policies may gate apply

State is managed in TFC backend

Final Thoughts: GitHub-Native vs. Terraform-Native

Terraform Cloud works best for teams that want a managed UI-centric experience with tight HashiCorp integration.

Terrateam, by contrast, embraces the GitOps model: your repos are the source of truth, your workflows live in GitHub, and your teams own the lifecycle of infra changes through familiar tooling.

For orgs that want flexibility, transparency, cost control, and developer-friendliness, Terrateam offers a modern alternative that fits how teams already work.

Want to try Terrateam?

Have questions? Join the Terrateam community Slack.

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