New Relic
Terraform
| Feature | New Relic | Terraform |
|---|---|---|
| Pricing | Free / from $0.3/mo | Free / from $0.00014/mo |
| Free Plan | ✓ Yes | ✓ Yes |
| Rating | 4.3 / 5 | 4.5 / 5 |
| Best For | development-teams, sre-teams, startups, devops-engineers | devops-engineers, cloud-architects, platform-teams, infrastructure-teams |
| Founded | 2008 | 2014 |
| Apm | ✓ | ✗ |
| Infrastructure Monitoring | ✓ | ✗ |
| Log Management | ✓ | ✗ |
| Browser Monitoring | ✓ | ✗ |
| Synthetics | ✓ | ✗ |
| Ai Assistant | ✓ | ✗ |
| Distributed Tracing | ✓ | ✗ |
| Error Tracking | ✓ | ✗ |
| Infrastructure As Code | ✗ | ✓ |
| Multi Cloud | ✗ | ✓ |
| State Management | ✗ | ✓ |
| Plan And Apply | ✗ | ✓ |
| Modules | ✗ | ✓ |
| Provider Ecosystem | ✗ | ✓ |
| Drift Detection | ✗ | ✓ |
✓ New Relic Pros
- Generous free tier with 100GB/month data ingest
- Full-stack observability in one platform
- Usage-based pricing is cost-effective for many teams
- Strong AI assistant (New Relic AI) for troubleshooting
✗ New Relic Cons
- Per-user pricing for full platform access
- Data retention limits on free tier
- Can be complex to set up comprehensively
✓ Terraform Pros
- Multi-cloud support with consistent workflow
- Declarative language (HCL) is readable and maintainable
- Massive provider ecosystem (3,000+ providers)
- State management tracks real infrastructure
- Terraform Cloud adds collaboration features
✗ Terraform Cons
- State file management requires careful handling
- BSL license change from open source caused controversy
- Complex modules can be hard to debug
The Verdict
New Relic is built for development teams and sre teams, with a focus on apm and infrastructure-monitoring. Terraform targets devops engineers and cloud architects and leads with infrastructure-as-code and multi-cloud.
Both tools come in at similar price points ($0.3/mo for New Relic, $0.00014/mo for Terraform), so pricing won't make the decision for you.
Both offer free plans, so you can test each with your real workflow before committing to a subscription.
Feature-wise, New Relic offers broader built-in capabilities (8 features vs 7), while Terraform takes a more focused approach — which can mean a simpler, faster onboarding experience.
Both tools are a solid fit for devops engineers — in those cases, the decision often comes down to workflow style and how your team prefers to organize work.
This is a genuinely close comparison. If you can, sign up for both free trials (where available) and run a one-week test with your actual team tasks before deciding.