Final answer:
Azure Reservations provide a cost-saving alternative to pay-as-you-go pricing by offering discounts for a commitment to a one-year or three-year term for virtual machines and other Azure services.
Step-by-step explanation:
Azure Reservations can indeed help you pay less for virtual machines (VMs) compared to pay-as-you-go pricing. This is because Azure Reservations offer discounted prices in exchange for committing to a one-year or three-year term of service for various Azure resources, including VMs. The reservation discount is applied automatically to the number of running instances that match the reservation terms and conditions.
Paying upfront or on a monthly basis for the committed term allows businesses to plan and budget more effectively. Additionally, while the pay-as-you-go model offers more flexibility since you're only charged for the resources you use as you use them, it does not provide the cost savings associated with Azure Reservations.