diff --git a/.gitignore b/.gitignore
index 9b8a46e..b25261b 100644
--- a/.gitignore
+++ b/.gitignore
@@ -32,3 +32,7 @@ override.tf.json
 # Ignore CLI configuration files
 .terraformrc
 terraform.rc
+
+# Ignore backend configuration files that may contain credentials
+backend.hcl
+*.backend.hcl
diff --git a/README.md b/README.md
index 3287e8c..376eded 100644
--- a/README.md
+++ b/README.md
@@ -164,17 +164,67 @@ module "renovate" {
 }
 ```
 
-### 3. Initialize Terraform
+### 3. Configure Backend (Optional)
+
+If using remote state storage (recommended), configure the backend:
 
 ```bash
+# Option 1: Using environment variables
+export AWS_ACCESS_KEY_ID="your-minio-access-key"
+export AWS_SECRET_ACCESS_KEY="your-minio-secret-key"
+
+terraform init \
+  -backend-config="endpoints={s3=\"https://minio.example.com:443\"}" \
+  -backend-config="bucket=terraform-state" \
+  -backend-config="key=docker/renovate/terraform.tfstate" \
+  -backend-config="region=main" \
+  -backend-config="skip_credentials_validation=true" \
+  -backend-config="skip_metadata_api_check=true" \
+  -backend-config="skip_requesting_account_id=true" \
+  -backend-config="skip_region_validation=true" \
+  -backend-config="use_path_style=true"
+```
+
+Or create a `backend.hcl` file:
+
+```hcl
+# backend.hcl
+endpoints = {
+  s3 = "https://minio.example.com:443"
+}
+bucket                      = "terraform-state"
+key                         = "docker/renovate/terraform.tfstate"
+region                      = "main"
+skip_credentials_validation = true
+skip_metadata_api_check     = true
+skip_requesting_account_id  = true
+skip_region_validation      = true
+use_path_style              = true
+```
+
+Then initialize:
+
+```bash
+export AWS_ACCESS_KEY_ID="your-minio-access-key"
+export AWS_SECRET_ACCESS_KEY="your-minio-secret-key"
+terraform init -backend-config=backend.hcl
+```
+
+### 4. Initialize Terraform
+
+```bash
+# For local state (not recommended for production)
 terraform init
+
+# Or with remote backend (see step 3)
+terraform init -backend-config=backend.hcl
 ```
 
 This will:
 - Download required providers (Docker, Vault, DNS)
-- Configure the MinIO backend for state storage
+- Configure the backend for state storage (if specified)
 
-### 4. Plan Deployment
+### 5. Plan Deployment
 
 ```bash
 terraform plan
@@ -182,7 +232,7 @@ terraform plan
 
 Review the planned changes to ensure everything is correct.
 
-### 5. Apply Configuration
+### 6. Apply Configuration
 
 ```bash
 terraform apply
@@ -190,7 +240,7 @@ terraform apply
 
 Confirm the changes to deploy the Renovate bot.
 
-### 6. Verify Deployment
+### 7. Verify Deployment
 
 After deployment:
 
@@ -326,13 +376,15 @@ For repositories with Terraform code:
 
 ### Hardcoded Values
 
-The following values are hardcoded and may need customization:
+The following values are hardcoded in `provider.tf` and may need customization:
 
-- **Docker Host**: `tcp://192.168.2.170:2376` (provider.tf)
-- **Vault Address**: `https://wbyc-srv-docker01.bsdserver.lan:8200` (provider.tf)
-- **MinIO Endpoint**: `https://minio.bsdserver.nl:443` (backend.tf)
-- **MinIO Credentials**: Access and secret keys in backend.tf (consider moving to variables)
-- **State File Path**: `home/docker/renovate/renovate.tfstate` (backend.tf)
+- **Docker Host**: `tcp://192.168.2.170:2376` (provider.tf:26)
+- **Vault Address**: `https://wbyc-srv-docker01.bsdserver.lan:8200` (provider.tf:33)
+
+**Note**: Backend configuration (MinIO/S3) is no longer hardcoded. Configure it via:
+- Environment variables: `AWS_ACCESS_KEY_ID`, `AWS_SECRET_ACCESS_KEY`
+- Command-line flags during `terraform init` (see "Configure Backend" section)
+- Backend configuration file (`backend.hcl`)
 
 ### Security Considerations
 
@@ -347,7 +399,7 @@ The following values are hardcoded and may need customization:
 
 ⚠️ **Security Notes**:
 
-1. **Hardcoded Credentials**: MinIO credentials in `backend.tf` should be moved to environment variables
+1. **Backend Credentials**: Use environment variables (`AWS_ACCESS_KEY_ID`, `AWS_SECRET_ACCESS_KEY`) instead of hardcoding
 2. **Token Management**: Store `renovate_token` in Vault or use environment variables
 3. **Repository Access**: Ensure bot user only has access to intended repositories
 4. **Log Retention**: Logs are sent to Docker daemon - ensure proper retention policies
diff --git a/backend.tf b/backend.tf
index 6ec9e79..1e8da3c 100644
--- a/backend.tf
+++ b/backend.tf
@@ -1,20 +1,24 @@
 terraform {
   backend "s3" {
-    endpoints = {
-      s3 = "https://minio.bsdserver.nl:443"
-    }
-
-    bucket = "home-terraform"
-    key    = "home/docker/renovate/renovate.tfstate"
-
-    access_key = "R9lCycfEO8qJ2dxlQT1S"
-    secret_key = "6rtVLjDIjx7U9ecNRkdbS3idSBNWsfNhN6wB20sJ"
-
-    region                      = "main"
-    skip_credentials_validation = true
-    skip_metadata_api_check     = true
-    skip_requesting_account_id  = true
-    skip_region_validation      = true
-    use_path_style              = true
+    # Backend configuration should be provided via:
+    # 1. Command-line flags during terraform init
+    # 2. Environment variables (AWS_ACCESS_KEY_ID, AWS_SECRET_ACCESS_KEY)
+    # 3. Backend config file
+    #
+    # Example init command:
+    #   terraform init \
+    #     -backend-config="endpoints={s3=\"https://minio.example.com:443\"}" \
+    #     -backend-config="bucket=terraform-state" \
+    #     -backend-config="key=docker/renovate/terraform.tfstate" \
+    #     -backend-config="region=main" \
+    #     -backend-config="skip_credentials_validation=true" \
+    #     -backend-config="skip_metadata_api_check=true" \
+    #     -backend-config="skip_requesting_account_id=true" \
+    #     -backend-config="skip_region_validation=true" \
+    #     -backend-config="use_path_style=true"
+    #
+    # Or use environment variables:
+    #   export AWS_ACCESS_KEY_ID="your-access-key"
+    #   export AWS_SECRET_ACCESS_KEY="your-secret-key"
   }
 }