Terraform Cloud is a collaboration platform designed for all Terraform users, offering free collaboration features and additional paid feature sets that provide team management, self-service infrastructure, and governance features. The platform allows users to manage remote state files, eliminating the need for local state storage and shared file management among team members. With Terraform Cloud, users can automatically handle state management, reducing complexity as the number of collaborators grows. This feature is part of a broader set of updates aimed at improving user experience and functionality in Terraform Cloud.