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Reserved Instances (AWS) / Reserved VM Instances (Azure) / Committed Use Discounts (GCP) all offer:
ASignificant discounts in exchange for a 1- or 3-year commitment to a baseline capacity
BA 50% surcharge on top of on-demand pricing
CA guarantee that the workload will never use any compute
DFree unlimited usage with no commitment
Answer & Solution
Correct answer: A. Significant discounts in exchange for a 1- or 3-year commitment to a baseline capacity
Reserved / Committed pricing trades flexibility for a steep discount when the customer commits to consistent usage. Some are 1-year, others 3-year. The other options are nonsense.
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