Terraform can’t replace it well. Maybe facilitate the transition to more cloud native setups where you don’t need Ansible at all. But only within limits. If you’re asked to implement something there’s no cloud offering for, and it’s slightly more complex, you’re back to ansible.
I can't do clouds except if the cloud itself is self-hosted. I'm always working with minimal hypervisors based on something like kvm/libvirt. Then I can do all the cloud stuff on top of that and boot vms with cloud-init. But over time a lot of ansible playbooks have accumulated and ideally I would like the entire state of all the infrastructure to be in a git repository. It's possible with ansible but I think it'll break in no time ;(
Terraform can’t replace it well. Maybe facilitate the transition to more cloud native setups where you don’t need Ansible at all. But only within limits. If you’re asked to implement something there’s no cloud offering for, and it’s slightly more complex, you’re back to ansible.