Terraform Cloud RUM Pricing Change—What Now?

IBM’s Influence on HashiCorp: This Was Always Coming

The writing was on the wall as soon as IBM acquired HashiCorp in 2024. The move signaled a shift towards monetization—and Terraform Cloud, their most premium SaaS product, was the obvious first target. HashiCorp had already changed Terraform’s license to Business Source License (BSL), and now they’re tightening the screws with Remote Operations & Management (RUM) pricing changes.

What does this mean for teams that rely on Terraform Cloud? More costs, more restrictions, and more reasons to explore alternatives.

Breaking Down Terraform Cloud RUM Pricing Changes

HashiCorp used to offer a free tier with up to 500 free resources under the pay-as-you-go plan. That’s gone now. Instead, Terraform Cloud users will now face:

Usage-based pricing with costs per RUM (Remote Operations & Management)
Enterprise pricing tiers that scale quickly beyond what most teams can justify
Potential vendor lock-in since Terraform Cloud is now deeply integrated with HashiCorp’s ecosystem

For many teams, this means reevaluating whether Terraform Cloud is still worth it—and in many cases, it’s not.

The Best Alternatives to Terraform Cloud

If you’re looking for a cost-effective alternative to Terraform Cloud, here are the best options, ranging from self-hosted to fully managed platforms.

1. Atlantis – The Open-Source Standard

Best for: Teams that want self-hosted, open-source Terraform automation

Atlantis is one of the most popular self-hosted alternatives to Terraform Cloud. It runs as a pull request-based workflow, meaning Terraform plans and applies happen inside GitHub/GitLab/Bitbucket PRs.

Why it’s great:

Free & open-source
Works natively with Git workflows
No vendor lock-in
Runs in your own infrastructure (self-hosted)

Downsides? You have to manage it yourself—which means infrastructure setup, maintenance, and scaling.

2. OpenTofu – A True Terraform Fork

Best for: Teams looking for an open-source Terraform replacement

If you want to avoid HashiCorp's pricing altogether, OpenTofu is the best option. It’s an open-source fork of Terraform, meaning it’s fully compatible with existing Terraform configurations.

Why it’s great:

Completely free (Apache 2.0 licensed)
No HashiCorp/IBM control
Drop-in replacement for Terraform
Backed by the Linux Foundation

The only issue? OpenTofu doesn’t include Terraform Cloud’s collaboration features, so you’ll need something like Atlantis or Scalr for automation.

3. Scalr – A True Terraform Cloud Alternative

Best for: Teams that want a managed Terraform Cloud alternative

Scalr is a fully managed Terraform alternative with a focus on policy-based workflows and cost management. Unlike Terraform Cloud, Scalr charges per run, making it ideal for teams that don’t want to pay for always-on pricing.

Why it’s great:

Per-run pricing (not per-user or per-RUM)
Supports OpenTofu and Terraform
Policy-as-Code & governance controls

Scalr is best suited for enterprises and larger teams who want Terraform Cloud’s features without the HashiCorp tax.

4. Spacelift – Best for Complex Workflows

Best for: Large-scale infrastructure teams needing advanced automation

Spacelift is a high-end Terraform automation platform built for complex workflows, security, and compliance. It offers:

Fine-grained RBAC
Automated drift detection
GitOps-style automation

Downside? It’s not cheap. Enterprise users report pricing starting at $24K per year, which might not be viable for smaller teams.

5. Env0 – Collaboration & Cost Controls

Best for: Teams that need collaboration features & cost tracking

Env0 offers a Terraform automation platform with team-based access controls and spending limits to prevent cost overruns.

Why it’s great:

Supports OpenTofu
Policy-based spending limits
Works well for teams managing multiple accounts

For organizations looking for Terraform Cloud-like collaboration without the new RUM pricing model, Env0 is a strong choice.

Making the Switch – How to Migrate Away from Terraform Cloud

If you’re considering moving away from Terraform Cloud, here’s a simple migration approach:

Evaluate your needs – Do you need a fully managed solution, or can you self-host?
Choose an alternative – Atlantis (self-hosted), Scalr (per-run pricing), OpenTofu (open-source), etc.
Migrate your state – Move your Terraform state files to S3 + DynamoDB (AWS), GCS (Google Cloud), or another backend.
Set up CI/CD workflows – If you were relying on Terraform Cloud’s automation, replace it with Atlantis, GitHub Actions, or Jenkins.
Test & validate – Before fully switching, test Terraform runs in your new system to ensure everything works.

Final Thoughts: Is Terraform Cloud Still Worth It?

For many teams, the answer is no. HashiCorp’s pricing change was predictable after IBM acquired them, but it still caught a lot of teams off guard.

The good news? There are better alternatives. Whether you choose Atlantis, OpenTofu, Scalr, Spacelift, or Env0, you can avoid the new Terraform Cloud pricing model without sacrificing functionality.

Now’s the time to explore what works best for your team.