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Logging · head to head

New Relic vs Terraform

New Relic logo

New Relic

Logging

Observability made simple

From
Free
Rated
-
Full reviewWebsite
Terraform logo

Terraform

Technology

Automate infrastructure on any cloud

From
Free
Rated
-
Full reviewWebsite

The short version

  • Each has a real cost: New Relic data ingest costs can be high for large-scale deployments with high logging volume, making budgeting difficult; Terraform hCL syntax requires learning a domain-specific language with limited GUI alternatives
  • They diverge on capability: New Relic covers APM, Terraform covers Infrastructure as code.

Where they differ

Only the attributes on which New Relic and Terraform actually diverge.

Attributes where New Relic and Terraform differ
AttributeNew RelicTerraform
PlatformsWeb, Api, MobileLinux, macOS, Windows
CategoryLoggingTechnology
Founded20082012

Identical on both: starting price (Free), pricing model (Unknown), 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 New Relic

  • APM
  • Infrastructure Monitoring
  • Log Management
  • Browser Monitoring
  • Synthetic Monitoring
  • Mobile Monitoring
  • Kubernetes Monitoring
  • AI Ops

Only in Terraform

  • Infrastructure as code
  • Resource graph
  • Plan & apply
  • State management
  • Provider ecosystem
  • Modules
  • Workspaces
  • Remote backends

Both cover

  • AWS
  • Azure
  • Kubernetes
  • GitHub
  • PagerDuty

What people use each for

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

New Relic

  • Application monitoringnot Terraform
  • Infrastructure monitoringnot Terraform
  • Error trackingnot Terraform
  • Performance optimizationnot Terraform

Terraform

  • Multi-cloud provisioningnot New Relic
  • Infrastructure automationnot New Relic
  • Environment replicationnot New Relic
  • Disaster recoverynot New Relic
  • Compliance automationnot New Relic

Where each one falls short

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

New Relic

  • Data ingest costs can be high for large-scale deployments with high logging volume, making budgeting difficult
  • Core user licensing model adds complexity to pricing with distinction between full platform users and basic users
  • Default logs obfuscation may miss some sensitive patterns requiring custom configuration
  • Retention limits even on paid tiers require additional storage for long-term compliance requirements

Terraform

  • HCL syntax requires learning a domain-specific language with limited GUI alternatives
  • State file management is complex, especially at scale with multiple workspaces
  • terraform import workflow is fiddly and must be done one resource at a time
  • No native error handling or try-catch capabilities like traditional programming languages
  • No automatic rollback capability - must manually delete and re-run if needed

Pricing, plan by plan

New Relic

Free

No published plan breakdown. See the New Relic review.

Terraform

Free

No published plan breakdown. See the Terraform review.

Which should you pick?

Choose New Relic if

  • You need apm.
  • You want to start without paying.
  • You work on Web, Api, Mobile.
  • You also want infrastructure monitoring.
New Relic review

Choose Terraform if

  • You need infrastructure as code.
  • You want to start without paying.
  • You work on Linux, macOS, Windows.
  • You also want resource graph.
Terraform review

Questions people ask

Is New Relic or Terraform better?
Neither clearly leads. New Relic starts at Free and Terraform at Free, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, New Relic or Terraform?
New Relic starts at Free and Terraform at Free.
Does New Relic or Terraform run on more platforms?
New Relic runs on Web, Api, Mobile. Terraform runs on Linux, macOS, Windows.
Can I use New Relic for free?
Both have a free tier, so you can try either at no cost before committing.
What is New Relic best used for?
New Relic is most often used for application monitoring, infrastructure monitoring, error tracking, performance optimization. Of those, application monitoring and infrastructure monitoring are not what Terraform is typically brought in for.
What can New Relic do that Terraform cannot?
New Relic covers APM, Infrastructure Monitoring, Log Management, Browser Monitoring. Terraform covers Infrastructure as code, Resource graph, Plan & apply, State management. Both handle AWS, Azure, Kubernetes, GitHub.

Answered from the vendors’ own pages

New Relic: Does New Relic offer a free tier?

Yes, New Relic's free tier is perpetual with no credit card required. It includes 100 GB of free data ingest monthly, one Full Platform User with access to all 50+ capabilities, and unlimited Basic Users for querying and dashboard creation.

Source
Terraform: Is there a free tier?

Yes. The free tier supports up to 500 managed resources and 1 concurrent run. The legacy free tier ends March 31, 2026; remaining organizations auto-convert to the enhanced free tier.

Source
New Relic: How much does New Relic cost for paid plans?

Paid plans start at $49 per month per core user. New Relic uses consumption-based pricing where you pay only for what you use. Annual commitment options are available with volume discounts for larger teams.

Source
Terraform: What clouds does Terraform support?

Terraform supports AWS, Microsoft Azure, Google Cloud Platform, Oracle Cloud, Docker, and HashiCorp's own HCP Terraform managed service, with over 2000 providers available.

Source
New Relic: What data retention is included in New Relic's free tier?

The free tier includes a minimum of 8 days data retention for troubleshooting. Paid plans offer extended retention periods and customizable data retention policies.

Source
Terraform: Do I need HCP Terraform Cloud or can I run locally?

Terraform runs locally by default, storing state on your machine. For team collaboration and production use, remote backends like S3, Azure Storage, or HCP Terraform are recommended for locking and security.

Source
New Relic: How many integrations does New Relic support?

New Relic provides access to 780+ integrations and unlimited hosts at no additional cost. These include monitoring integrations for various cloud services, databases, and applications.

Source
Terraform: Is HCL hard to learn?

HCL is designed to be human-readable and sits between JSON and YAML. It supports comments, variables, functions, and conditional logic. While beginners can get started quickly, mastering advanced features takes practice.

Source
New Relic: Can I use New Relic to monitor multiple cloud providers?

Yes, New Relic is cloud-agnostic and supports monitoring across AWS, Google Cloud, Azure, and on-premises infrastructure in a single platform.

Source
New Relic: What is New Relic's ownership structure today?

New Relic was acquired by TPG and Francisco Partners on July 31, 2023, for $6.5 billion and transitioned from a publicly traded company to a private company in November 2023.

Source
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