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Overview

Terraform Cloud extends your typical Terraform process—write configurations, run terraform plan, and execute terraform apply—by centralizing state, history, and team collaboration. Whether you’re kicking off runs manually, triggering them on Git commits, or embedding Terraform in CI/CD pipelines, Terraform Cloud adapts to your needs. Terraform Cloud offers three main workflows to fit different team models:
The image is a slide explaining how Terraform Cloud can integrate with team workflows, offering manual, semi-automatic, and continuous infrastructure options. It includes a logo and cartoon characters at the bottom.
Workflow TypeTriggerState & Run HistoryIdeal Use Case
CLI WorkflowLocal CLI commandsRemote (Terraform Cloud)Individual development & testing
Version Control WorkflowGit commits or PRsRemote (Terraform Cloud)GitOps-driven teams
API WorkflowTerraform Cloud APIRemote (Terraform Cloud)CI/CD pipelines & custom tools
Depending on how mature your processes are, you can:
  • Queue runs on demand (manual).
  • Push code to version control and apply manually (semi-automated).
  • Deploy infrastructure on every commit (continuous).
When you create a workspace, Terraform Cloud prompts you to select a workflow: Command Line (CLI), Version Control (VCS), or API.
The image illustrates three types of workflows: Command Line (CLI), Version Control Software (VCS), and API, with a checkmark next to VCS. It includes the HashiCorp Terraform Cloud logo.

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1. CLI Workflow

The CLI Workflow is the default experience in Terraform Cloud and closely parallels open-source Terraform. You author and plan locally, but state and run history live in Terraform Cloud.
The image is a slide titled "Terraform CLI Workflow," describing Terraform Cloud's default workflow, its familiarity for existing Terraform OSS users, and its collaboration features. It includes two cartoon characters at the bottom right.
Typical local steps: 
terraform init
terraform plan
terraform apply
With the CLI workflow:
  • State is stored remotely in Terraform Cloud.
  • Runs can execute locally or in Terraform Cloud, based on workspace settings.
  • You retain familiar CLI commands.
To connect your local CLI to Terraform Cloud, add a terraform block in your configuration: 
terraform {
  cloud {
    hostname     = "app.terraform.io"
    organization = "my-organization"
    workspaces {
      name = "bagapp-web-aws-prod"
    }
  }
}
This configuration tells Terraform where to store state and which workspace to target.
If you haven’t authenticated yet, run terraform login to save your API token locally.

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2. Version Control Workflow

The Version Control Workflow (VCS) integrates Terraform Cloud directly with Git platforms (GitHub, GitLab, Bitbucket, Azure DevOps). Each commit or pull request can automatically trigger plans and, optionally, applies.
The image is a slide titled "Version Control Workflow," explaining how code is stored in a repository and connected through VCS platforms like GitHub, GitLab, BitBucket, and Azure DevOps, with a process involving SSH keys, code commits, and triggering Terraform runs.
Key features:
  • Automated terraform plan on commits or pull requests.
  • Speculative runs for pre-merge previews.
  • Manual or automatic terraform apply after approval.
  • Branch-to-workspace mapping for different environments.
Supported VCS providers:
  • GitHub
  • GitLab
  • Bitbucket
  • Azure DevOps
For private Git servers, configure SSH keys under your workspace settings. When you push to the connected branch, Terraform Cloud will:
  1. Detect the commit.
  2. Run terraform plan.
  3. Pause for manual approval (if auto-apply is off).
  4. Execute terraform apply (if approved) and stream results back to both the UI and your Git platform.
You can still run speculative plans locally: 
terraform plan
But all applies happen through commits, ensuring your infrastructure matches version-controlled code.
The image illustrates a version control workflow involving a developer committing changes to a GitHub repository, triggering Terraform Cloud to execute and manage cloud resources and VMs/containers.

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Branching Strategy Example

Here’s one common mapping of Git branches to Terraform Cloud workspaces:
The image illustrates a version control workflow for Terraform Cloud, showing branches like master, stage, and dev, with processes such as speculative plans and apply steps. It includes workspaces for different environments and a logo for Terraform Cloud.
Git BranchWorkspace
devDevelopment
stageStaging
main/masterProduction
Choose branch names and workspace mappings that align with your team’s release process to avoid accidental applies in production.

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3. API Workflow

The API Workflow is the most flexible. It’s perfect for teams embedding Terraform in CI/CD pipelines, internal dashboards, or custom tools. You create runs via Terraform Cloud’s REST API, giving you full programmatic control.
The image illustrates an API workflow involving a build and release process, an API call to HashiCorp Terraform Cloud using an API token, and the management of cloud resources through workspaces.
With the API workflow you will:
  1. Package Terraform configurations (as a ZIP or VCS module).
  2. Authenticate with an API token.
  3. Call Terraform Cloud’s Runs API to create and monitor plans/applies.
  4. Implement custom logic for error handling and approvals.
Use official client libraries (Go, Python, Ruby, .NET) or direct HTTP requests to integrate tightly with your existing toolchain.
Review the Terraform Cloud API documentation for endpoint details and rate limits.

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Summary

Terraform Cloud provides three workflows to suit your team’s collaboration style:
Workflow TypeDescription
CLI WorkflowFamiliar local commands with remote state.
Version Control WorkflowGitOps-driven automation on commits/PRs.
API WorkflowFull programmatic control via REST API.
Each workspace in Terraform Cloud can be configured for one of these workflows—and you can switch workflows as your processes evolve.

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