Reserved Instances are a pricing model that offers significant discounts on Amazon EC2 usage compared to On-Demand Instances. Reserved Instances are suitable for stateful workloads that have predictable and consistent usage patterns for a long-term period. By committing to a one-year or three-year term, customers can reduce their total cost of ownership and optimize their cloud spend. Reserved Instances also provide capacity reservation, ensuring that customers have access to the EC2 instances they need when they need them. References: AWS Pricing Calculator, Amazon EC2 Pricing, [AWS Cloud Practitioner Essentials: Module 3 - Compute in the Cloud]
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