Comment by lawnchair

Terraform Cloud does not actually solve this. It moves the state into their service and manages locking centrally, but the underlying model is unchanged. It is still one file with a global lock. That is why refresh bottlenecks and contention show up there too. What we are pointing at is the model itself, not just where the file is hosted. We know this space well from building Terrateam, which competes with Terraform Cloud on orchestration.