Final answer:
Reserved Pricing or Reserved Instances is the pricing option that provides lower prices in exchange for a long-term commitment to using cloud computing resources.
Step-by-step explanation:
The pricing option that offers lower prices in exchange for a commitment to use the instance over a longer period of time is known as Reserved Pricing or Reserved Instances. This option is typically used in cloud computing services, where customers can reserve resources for one or three years in return for significantly lower rates compared to on-demand instance pricing. These types of commitments benefit both the provider, by ensuring steady utilization of their resources, and the customer, by providing cost savings over the long term.
For example, in AWS, users can reserve instances for one or three years, paying an upfront fee and receiving a discounted hourly rate. This is beneficial for businesses or organizations that know they will require a certain level of computing resources for an extended period of time. Reserved Instances provide cost predictability and can lead to significant savings in the long run.