Workspaces are the unit of organization in Terraform Enterprise. A workspace encapsulates a Terraform configuration, Terraform state, variables, and run history.
We recommend that organizations break down large monolithic environments into smaller workspaces, then delegate permissions and responsibilities for those workspaces. For example, a "Production" environment could be split into "networking-prod", "app1-prod", "monitoring-prod" workspaces, each with separate teams managing each. Much like splitting monolithic applications into smaller microservices, this enables teams to make changes in parallel.