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Cloud · head to head

Cilium vs HCP Terraform

Cilium logo

Cilium

Cloud

eBPF-based networking, observability and security for Kubernetes

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: Cilium requires a recent Linux kernel, which rules out older distributions and some managed environments; HCP Terraform legacy free version deprecated; no current freemium tier
  • Prices and features above were last checked on 29 August 2026.

Where they differ

Only the attributes on which Cilium and HCP Terraform actually diverge.

Attributes where Cilium and HCP Terraform differ
AttributeCiliumHCP Terraform
Pricing modelOpen source, no licence feeusage-based
PlatformsKubernetes, LinuxWeb
CategoryCloudDeveloper Tools

Identical on both: starting price (Free), 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 Cilium

  • eBPF datapath
  • Identity-based policy
  • Hubble observability
  • Sidecar-free mesh

Only in HCP Terraform

Nothing recorded that Cilium does not also cover.

What people use each for

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

Cilium

  • Kubernetes networking at a scale where iptables-based CNI performance degradesnot HCP Terraform
  • Network policy expressed on workload identity rather than fragile IP rulesnot HCP Terraform
  • Seeing which services actually talk to each other, and what policy is droppingnot HCP Terraform

HCP Terraform

  • Infrastructure as Code managementnot Cilium
  • Cloud resource provisioningnot Cilium

Where each one falls short

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

Cilium

  • Requires a recent Linux kernel, which rules out older distributions and some managed environments
  • eBPF is genuinely hard to debug when it misbehaves, and the skill is rare on most teams
  • Broad scope — CNI, policy, mesh, observability — means the learning curve covers several domains at once

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

Cilium

Free
  • CiliumFree
    • Full functionality
    • No usage limits
    • Community support

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 Cilium if

  • You need ebpf datapath.
  • You want to start without paying.
  • You work on Kubernetes, Linux.
  • You also want identity-based policy.
Cilium review

Choose HCP Terraform if

  • You want to start without paying.
HCP Terraform review

Questions people ask

Is Cilium or HCP Terraform better?
Neither clearly leads. Cilium 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, Cilium or HCP Terraform?
Cilium starts at Free and HCP Terraform at Free.
Does Cilium or HCP Terraform run on more platforms?
Cilium runs on Kubernetes, Linux. HCP Terraform runs on Web.
Can I use Cilium for free?
Both have a free tier, so you can try either at no cost before committing.
What is Cilium best used for?
Cilium is most often used for kubernetes networking at a scale where iptables-based cni performance degrades, network policy expressed on workload identity rather than fragile ip rules, seeing which services actually talk to each other, and what policy is dropping. Of those, kubernetes networking at a scale where iptables-based cni performance degrades and network policy expressed on workload identity rather than fragile ip rules are not what HCP Terraform is typically brought in for.
What can Cilium do that HCP Terraform cannot?
Cilium covers eBPF datapath, Identity-based policy, Hubble observability, Sidecar-free mesh.

Answered from the vendors’ own pages

Cilium: Is Cilium free?

Yes, open source and CNCF-graduated. Isovalent sells an enterprise distribution and support.

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
Cilium: What does eBPF change?

It lets Cilium run packet-processing programs inside the kernel instead of relying on iptables rule chains, which behave poorly as the number of services grows.

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
Cilium: Does Cilium replace a service mesh?

It can cover much of what a mesh does without sidecars, though full mesh feature sets still favour Istio or Linkerd.

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
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