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AWS (Amazon Web Services) vs HCP Terraform

AWS (Amazon Web Services) logo

AWS (Amazon Web Services)

Cloud

The leading cloud computing platform

From
Free
Free plan
Yes
Full reviewWebsite
HCP Terraform logo

HCP Terraform

Developer Tools

Infrastructure as code provisioning and management, formerly Terraform Cloud

From
Free
Free plan
Yes
Full reviewWebsite

The short version

  • Each has a real cost: AWS (Amazon Web Services) data transfer in is free and data transfer out is charged, which is the standard source of unexpected bills; HCP Terraform legacy free version deprecated; no current freemium tier
  • Prices and features above were last checked on 30 August 2026.

Where they differ

Only the attributes on which AWS (Amazon Web Services) and HCP Terraform actually diverge.

Attributes where AWS (Amazon Web Services) and HCP Terraform differ
AttributeAWS (Amazon Web Services)HCP Terraform
PlatformsWeb, Api, Cli, MobileWeb
CategoryCloudDeveloper Tools
Founded2006Unknown

Identical on both: starting price (Free), pricing model (usage-based), free tier (Yes), user rating (Not yet rated).

What each one covers

Drawn from each product's published feature list. An absence here means we hold no record of it - not that the product lacks it.

Only in AWS (Amazon Web Services)

  • EC2 - Virtual Servers
  • S3 - Object Storage
  • RDS - Managed Database
  • Lambda - Serverless Computing
  • CloudFront - CDN
  • VPC - Virtual Network
  • IAM - Access Management
  • CloudWatch - Monitoring

Only in HCP Terraform

Nothing recorded that AWS (Amazon Web Services) does not also cover.

What people use each for

The jobs each tool is most often brought in to do.

AWS (Amazon Web Services)

  • Web hostingnot HCP Terraform
  • Data storagenot HCP Terraform
  • Machine learningnot HCP Terraform
  • Big data analyticsnot HCP Terraform
  • Application developmentnot HCP Terraform

HCP Terraform

  • Infrastructure as Code managementnot AWS (Amazon Web Services)
  • Cloud resource provisioningnot AWS (Amazon Web Services)

Where each one falls short

Documented limitations, not opinions. Every one is a constraint you would hit in normal use.

AWS (Amazon Web Services)

  • Data transfer in is free and data transfer out is charged, which is the standard source of unexpected bills
  • Discounts require one or three year Savings Plan commitments rather than being automatic
  • Every service is priced separately, so a working architecture has no single published cost
  • The free tier is a promotional allowance rather than an ongoing free plan

HCP Terraform

  • Legacy free version deprecated; no current freemium tier
  • New users receive $500 credit but still require usage to continue service
  • Terraform Enterprise requires custom pricing

Pricing, plan by plan

AWS (Amazon Web Services)

Free
  • AWS Free TierFree
    • EC2 750 hours/month
    • 5GB S3 storage
    • 20GB data transfer
  • Pay-As-You-GoFree
    • No upfront payment
    • No long-term commitments
    • Pay only for what you use

HCP Terraform

Free
  • Essentials$0.1/month
    • Per resource pricing
    • Remote state storage
    • VCS connection
  • Standard$0.47/month
    • Per resource pricing
    • Essentials features plus unlimited modules
    • Module deprecation
  • Premium$0.99/month
    • Per resource pricing
    • Standard features plus module revocation
    • Waypoint actions

Which should you pick?

Choose AWS (Amazon Web Services) if

  • You need ec2 - virtual servers.
  • You want to start without paying.
  • You work on Web, Api, Cli, Mobile.
  • You also want s3 - object storage.
AWS (Amazon Web Services) review

Choose HCP Terraform if

  • You want to start without paying.
HCP Terraform review

Questions people ask

Is AWS (Amazon Web Services) or HCP Terraform better?
Neither clearly leads. AWS (Amazon Web Services) starts at Free and HCP Terraform at Free, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, AWS (Amazon Web Services) or HCP Terraform?
AWS (Amazon Web Services) starts at Free and HCP Terraform at Free.
Does AWS (Amazon Web Services) or HCP Terraform run on more platforms?
AWS (Amazon Web Services) runs on Web, Api, Cli, Mobile. HCP Terraform runs on Web.
Can I use AWS (Amazon Web Services) for free?
Both have a free tier, so you can try either at no cost before committing.
What is AWS (Amazon Web Services) best used for?
AWS (Amazon Web Services) is most often used for web hosting, data storage, machine learning, big data analytics. Of those, web hosting and data storage are not what HCP Terraform is typically brought in for.
What can AWS (Amazon Web Services) do that HCP Terraform cannot?
AWS (Amazon Web Services) covers EC2 - Virtual Servers, S3 - Object Storage, RDS - Managed Database, Lambda - Serverless Computing.

Answered from the vendors’ own pages

AWS (Amazon Web Services): What are AWS's payment options and pricing models?

AWS offers four pricing approaches: pay-as-you-go (you pay only for what you use), flat-rate plans combining multiple services into one monthly price without overages, Savings Plans offering discounts on compute and machine learning with 1- or 3-year commitments, and volume-based tiered pricing where costs decrease as usage increases.

Source
HCP Terraform: How much does HCP Terraform cost?

HCP Terraform uses per-resource pricing starting at $0.10/month/resource for Essentials, $0.47/month/resource for Standard, and $0.99/month/resource for Premium.

Source
AWS (Amazon Web Services): Are there contracts, termination fees, or commitments required for AWS?

No long-term contracts are required for AWS services. No termination fees apply once you stop using the service. Savings Plans provide optional 1- or 3-year commitments with discounted hourly rates, but you can revert to pay-as-you-go pricing anytime.

Source
HCP Terraform: Does HCP Terraform offer a free tier?

No, the legacy free version has been deprecated. However, new users receive $500 credit to try the service.

Source
AWS (Amazon Web Services): Does AWS offer a free tier?

AWS provides a free tier that offers hands-on experience with AWS products at no charge. The free tier allows new customers to try eligible services before committing to paid usage.

Source
HCP Terraform: What does the Standard plan include?

Standard plan at $0.47/month/resource includes unlimited modules, module deprecation, team notifications, no-code provisioning, and Waypoint templates.

Source
AWS (Amazon Web Services): How do I estimate my AWS costs?

AWS provides the AWS Pricing Calculator and Cost Explorer tool to estimate costs for single or multiple services. AWS also offers cost optimization recommendations, performance reporting, and budget alerts to help track and control spending.

Source
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