When comparing Parallels Desktop vs iTerm2, the Slant community recommends iTerm2 for most people. In the question“What are the best power user tools for macOS?” iTerm2 is ranked 1st while Parallels Desktop is ranked 59th. The most important reason people chose iTerm2 is:
Other than being able to customize the various shortcuts, iTerm2 also lets you customize the colorscheme, font, transparency, etc.
Specs
Ranked in these QuestionsQuestion Ranking
Pros
Pro Best-in-class gaming performance
Compared to other VMs, Parallels has the best gaming performance. Still, a good framerate can only be achieved with games that have very low resource requirements. A much better option for resource intensive games is dual booting Windows (via Boot Camp).
Pro Easy to use
Parallels has an easy to learn and use UI. All important features are wizard based. It requires only a few clicks for the wizard to download and set up the latest Chrome OS, Windows or Linux build.
Pro Can run Windows apps as native OS X apps
Parallels has a "Coherence View" mode that allows running Windows applications as if they were native OS X apps. In this mode Windows is virtualized in background and Windows features like Jump Lists, Taskbar, Start Menu, etc can be embedded directly within OS X.
Pro Best integration ever
Pro Extremely customizable
Other than being able to customize the various shortcuts, iTerm2 also lets you customize the colorscheme, font, transparency, etc.
Pro Autocomplete is built-in
iTerm has autocomplete features built in. It remembers your past commands and when you are writing something on the terminal, simply pressing Control-;
it will show you a drop down menu of suggestions from which to choose.
Pro Complete out of the box
Unlike most terminal emulators, iTerm2 comes with a pretty complete set of features. It has built-in search, autocompletion, tabbed navigation, Growl support and even a built-in clipboard manager for various API keys and such.
Pro Fine tuning for fonts
It's possible to choose a font and adjust vertical and horizontal spacing.
Pro Can immediately open files inside a text editor
You can Ctrl+Click on a file path to open said file in a text editor.
Pro Supports mouse actions
Has support for mouse actions like clicking, dragging, selecting, etc.
Pro Active maintainers
Issues resolved fast by quality contributors.
Pro Works well with powerline fonts
Pro Completely free and open source
iTerm2 is completely free and open source. It's released under the GPLv2 license.
Pro Split panes
Easy to split panes to either horizontal or vertical sections. Makes it easy to observe multiple console windows.
Pro Supported by many applications as a terminal app selection
If an application has terminal integration, there is high probability it allows iTerm2 to be selected.
Pro Intuitive
Pro Cmd+Shift+I to Input all
Wanna SSH your server from multiple tabs, here you go.
Pro You only need to type in commands once
iTerm2 can store up to 4M of history of commands you already used. This, coupled with the built-in search features makes it possible to type a command only once and then search for it through the history for subsequent uses.
Pro Works perfect with Oh My Zsh
It's a perfect base to add Oh My Zsh on top of it and enjoy a lot of themes and a really pleasant look and feel.
Pro Works well with tmux
The great mouse and clipboard support that are built-in go really well with tmux.
Pro Any key can be mapped to any function
Using the Preferences Menu you can set up hotkeys to map virtually any action you can think of to a single key or a combination of them. This is extremely helpful as it allows you to use shortcuts to edit commands you are typing in the terminal and while most terminal emulators have shortcuts for this sort of thing, few of them let you define your own.
Pro GPU-rendered, blazing fast and super smooth
Many people say they use Kitty or Alacritty because they are GPU-rendered. That was true a long time ago. But iTerm2 has been GPU rendered for years now. It's so fast and smooth that you soon forget you are in a terminal.
Pro Beautiful, minimalistic and elegant UI
It's super-clean and during use it gets completely out of the way, it's a beautiful canvas for your terminal work, a pure joy that never gets old.
Pro Can be configured as a drop-down terminal
Can be configured to work as a drop down terminal like Quake.
Pro Cmd+D to split plane vertically
Very handy to use multi-tab.
Cons
Con Very expensive
Parallels upgrades are very expensive. Even if I bough several versions of Parallels I will switch back to free VirtualBox as they even "invented" the Pro version - mainly doubled the price you have to pay each year to have the software updated.
Con Can't import OVA files
OVA files are useful because they include all of its supporting files. Unfortunately, Parallels doesn't support these useful files.
Con Requires buying a new version of the software with each new OS X release
Chances are that the same version of Parallels won't work with different OS X releases, requiring a separate purchase of Parallels for each OS X version.
Con Home edition doesn't work with Vagrant or Docker Machine
Make sure you purchase the Pro edition (the subscription) if you need command-line access to the hypervisor.
Con Can't export OVA files
One you use parallel you get trapped into a proprietary format.
Can't share disk blocks on two unrelated virtual machines (KSM for disk) too.
Con Keycodes are not passed through following Linux standards
If you come from a Linux terminal emulator (Gnome Terminal, Konsole...) and you rely on key-combos that are widely supported in those, porting the same functionality to iTerm is possible but will require a lot of research and configuration on your part, so account for a long painful adoption period.
Con Not quite as fast as Alacritty or Kitty
Comparing these 3 terminals on the same machine/config, iTerm stands out as the slowest of the bunch. The difference may not be noticeable to all users.
Con Way too many menu items and settings
Finding the right one is like searching for a needle in a haystack.
Con Doesn't support Snow Leopard 10.6.8
Some people still use Snow Leopard or other 32-bit systems.