Final answer:
EC2 Reserved Instances provide discounted rates for committing to specific instance usage over a set period, usually one or three years, offering notable cost savings compared to on-demand service pricing.
Step-by-step explanation:
You asked about what EC2 Reserved Instances payment provides. EC2 Reserved Instances offer discounted rates in exchange for a commitment to utilize a specific instance type in a defined region for a one-year or three-year period. By choosing Reserved Instances, users can significantly lower their compute costs compared to on-demand pricing.
The payment option represents a financial commitment for EC2 capacity with a sizeable discount as a trade-off for that long-term commitment.