To share Terraform state with your team, store it securely, and provide state locking, which backend configuration would you choose?

• A. Local backend
• B. S3 backend without DynamoDB
• C. Remote backend with Terraform Cloud / Terraform Enterprise
• D. Consul backend

Answer: (C)

Backends control where Terraform keeps its state and how it’s accessed and locked. When you need to share state with a team, store it securely, and ensure only one operation can modify it at a time, a remote backend with Terraform Cloud or Terraform Enterprise is the best fit. It centralizes state storage, enforces state locking, and provides access controls, versioning, and audit trails, making collaboration safe and predictable. It also handles encryption and secure credential management at scale. The other options fall short in one or more areas: a local backend stays on a single machine with no sharing or locking; an S3 backend without DynamoDB stores state remotely but has no built-in locking, risking concurrent writes; and a Consul backend requires managing a separate Consul cluster and doesn’t offer the same integrated collaboration and governance features as Terraform Cloud.