Infrastructure as code platforms shape how teams build, secure, and scale their cloud. Terraform Cloud and Spacelift solve similar problems but with very different philosophies. The main difference is that Terraform Cloud is centered on Terraform, while Spacelift adapts to multi-IaC environments.
In this article, we explore their differences to help teams choose the right fit for their environment.
Terraform Cloud, now officially branded as HCP Terraform as part of the HashiCorp Cloud Platform, is a managed service for running Terraform in a centralized, collaborative environment. It provides remote state storage, VCS-driven runs, and policy enforcement without requiring local CLI execution.
Terraform Cloud enables teams to automate infrastructure provisioning with built-in access controls, auditing, and compliance through Sentinel and Open Policy Agent (OPA) policies. By offloading execution and state management, it simplifies workflows compared to self-managed setups, making it well-suited for organizations that standardize on Terraform and need a secure, scalable IaC solution.
Spacelift is an infrastructure as code (IaC) management platform that automates deployment, testing, and governance for tools like Terraform, OpenTofu, Pulumi, and CloudFormation. It functions as a CI/CD layer purpose-built for infrastructure, combining GitOps workflows, drift detection, and policy-as-code through Open Policy Agent (OPA).
Spacelift includes features such as role-based access control, dependency handling, secrets management, and context-aware policies. Infrastructure changes can be triggered directly from Git events, and teams can manage approvals and workflows through a visual interface.
Unlike general-purpose CI/CD systems, Spacelift is designed specifically for IaC, making it easier to enforce security and governance while maintaining developer velocity.
The main difference between Spacelift and Terraform Cloud is that Spacelift offers a more flexible, VCS-driven automation platform that supports multiple IaC tools, while Terraform Cloud is a managed service focused exclusively on the Terraform workflow.
1. Workflows & IaC support
Terraform Cloud and Spacelift both manage infrastructure through code, but they approach workflows and core abstractions very differently.
Terraform Cloud organizes work into Workspaces, each tied to a specific Terraform configuration. Workspaces keep projects separate, but coordinating them can be difficult. HCP Terraform also offers Stacks and run triggers to model dependencies and automatically trigger downstream runs.
Spacelift uses Stacks, which can represent a project or an entire environment. Stacks support dependencies, policies, and integrations, and they can be connected to flow changes across your setup. This makes managing complex infrastructure more seamless.
Read more: Terraform Cloud / Enterprise Workspaces vs. Spacelift Stacks
On the workflow side, Terraform Cloud is built around Terraform. It provides a straightforward path for plans, applies, and state management, but only within HashiCorp’s ecosystem. Terragrunt is not supported natively by HCP Terraform runners (they run Terraform CLI only). If you rely on Pulumi, CloudFormation, or Kubernetes, you may find it limiting.
Spacelift supports multiple IaC tools through a single platform. These include Terraform, OpenTofu, Pulumi, CloudFormation, Kubernetes and Ansible. Teams can run consistent workflows across tools, with flexible triggers, policies, and approvals that adapt to the way they work.
2. Execution
In Terraform Cloud, runs are executed in HashiCorp’s managed environment. You can also run in your own network using HCP Terraform Agents (self-hosted execution). This removes the need to provision or manage your own workers, which can simplify operations. At the same time, it means execution happens outside of your own infrastructure, which may be a factor for teams with strict security or compliance requirements.
Spacelift provides two options. You can use managed workers, similar to Terraform Cloud, or set up self-hosted workers that run inside your own cloud account. The managed model reduces overhead, while the self-hosted model allows greater control over networking, secrets, and compliance. (Self-hosted worker pools are part of Spacelift’s architecture.)
Spacelift also makes it possible to extend execution with additional steps, such as security checks or tests, directly in the pipeline.
Both platforms also offer drift detection, though Terraform Cloud’s scope is limited to Terraform, while Spacelift applies it across multiple IaC tools with more flexible remediation options.
3. Governance
As infrastructure scales, governance becomes a key consideration. Both Terraform Cloud and Spacelift provide core enterprise features such as RBAC, SSO, SCIM, and audit trails to ensure identity, access, and compliance requirements are met.
The main distinction is in policy frameworks. Terraform Cloud uses Sentinel, HashiCorp’s policy-as-code system, and OPA policies. Sentinel and OPA policies can be scoped and attached as policy sets.
OPA policies can be applied to infrastructure workflows in Spacelift and may also be reused in other contexts where OPA is already in place. Spacelift also includes a policy library with templates you can import and adapt.
In addition to policies, Spacelift supports approvals, dependencies, and workflow controls that can be adapted to organizational needs.
In practice, Terraform Cloud provides a governance model designed for teams fully centered on Terraform. Spacelift offers governance based on open standards that can extend across multi-tool environments.
4. Integrations & ecosystem
For most teams, an IaC management platform is only as useful as the systems it connects with. Both Terraform Cloud and Spacelift integrate with common version control providers like GitHub, GitLab, and Bitbucket, so changes to infrastructure code can trigger runs automatically.
Beyond version control, their approaches begin to differ. Terraform Cloud focuses on integrations that fit tightly within the HashiCorp ecosystem, with support for run tasks, Splunk, and ServiceNow (including Service Catalog), plus private VCS via Agents to extend workflows. This works well for teams who primarily operate within Terraform’s boundaries.
Spacelift is designed to act as a central hub in a broader DevOps stack. In addition to VCS integration, it connects with CI/CD systems, secrets managers, cloud providers, and collaboration tools like Slack and Microsoft Teams. Its Resources view provides inventory-style visualization and lifecycle tracking across tools.
Governance is also tied into its integrations, with OPA and policy checks that can be applied across workflows. This makes it easier for teams to align infrastructure automation with the tools they already use daily.
5. Pricing
Terraform Cloud uses a Resources Under Management (RUM) model. The plan you choose affects concurrency (the number of runs you can execute in parallel). Higher tiers unlock greater concurrency, but this can make scaling more expensive as teams grow.
Spacelift follows a usage-oriented model. It’s not RUM-based and does not charge per resource. Instead of paying per seat, pricing is centered on actual activity, with concurrency included by default. Teams can run multiple stacks in parallel without hitting artificial concurrency limits tied to plan levels. This can make costs more predictable for organizations with many engineers or frequent automated runs.
The table below summarizes the comparison between Terraform Cloud and Spacelift:
| Spacelift | Terraform Cloud | |
| Predictable, cost-effective pricing | ✅Yes | ❌ RUM-based (per resource, for paid tiers) |
| Multi-IaC workflow | ✅Yes – Terraform, OpenTofu, Terragrunt, CloudFormation, Kubernetes, Ansible, Pulumi | ❌Terraform-only |
| Dependencies workflow | ✅Yes | ❌No |
| Integrations | ✅Unlimited integrations | 🟠 Integrations limited to run tasks |
| Full-workflow control | ✅Full control over your workflow by bringing your image, modifying the default workflow, and hooks in runner phases | ❌Limited to what TFE lets you do |
| Policies across various decision points | ✅Control almost any aspect of the platform through policies | 🟠Only the equivalent of plan and approval policies |
| Policy library | ✅Yes, policy templates can be imported easily and modified to suit your needs | ❌No |
| Resource management | ✅Full inventory management solution including visualization, lifecycle tracking, search, and filtering | 🟠Resource view only per workspace |
| Auto-attachable contexts and policies | ✅Yes, this can be done easily via labels | ❌No |
| Unlimited policies and third-party tools integrations | ✅Yes | ❌No, in the lower tiers you are limited to a predefined number |
| Targeted runs | ✅Native | 🟠Only with the TF_CLI_ARGS_plan |
| Atlantis-style workflow | ✅Yes | 🟠Partial |
| Custom tasks | ✅Yes | ❌ No |
| Advanced scheduling | ✅Yes | ❌No |
| State management | ✅Managed + Optional ability to use other backends | 🟠Managed only |
This comparison reflects platform capabilities as of October 2025, based on publicly available documentation and vendor materials. Terraform Cloud features and limitations may vary by plan tier.
TFC is built for Terraform-first shops, with workspaces, fixed concurrency, and Sentinel and OPA-based governance. Spacelift takes a broader approach, supporting multiple IaC tools, self-hosted or managed workers, open standards like OPA, and deep integrations across the DevOps stack.
Spacelift offers more flexibility for teams using multi-IaC tools or requiring advanced automation and policy customization. For Terraform-centric workflows, Terraform Cloud offers a simpler native experience.
If you want to learn more about Spacelift, create a free account or book a demo with one of your engineers.
If you are already using Terraform Cloud and want to switch to Spacelift, check out this migration tutorial to see how easy it is. To learn more about the advantages of migrating from Terraform Cloud to Spacelift, check out our Terraform Cloud alternative page.
The best Terraform Cloud alternative
Spacelift is a Terraform Cloud alternative that works with Terraform, Terragrunt, and many other IaC frameworks. It offers a predictable pricing model and supports self-hosted on-prem workers, workflow customization, drift detection, and much more.
Frequently asked questions
What is the difference between Terraform Enterprise and Spacelift?
Terraform Enterprise is designed to manage and scale Terraform workflows within HashiCorp’s ecosystem, while Spacelift provides a flexible platform for managing multi-IaC workflows across diverse tools and environments.
What is the difference between HCP Terraform and Spacelift?
HCP Terraform is HashiCorp’s managed service for running Terraform within its own ecosystem, while Spacelift is a platform that supports Terraform alongside other IaC tools and gives teams more flexibility in workflows, execution, and integrations.
