When you migrate from Author-it On-Premises to Author-it Cloud, any external files used by your Author-it On-Premises installation will need to be moved to the Files module. External files include publishing templates, images used by the templates, image files used for linked images, and any other external files referenced by objects in your library.
Before migrating, your organization will need to determine what structure the folders in the Files module will have. There a few options your organization can choose from, which an Author-it consultant will discuss with you:
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Recreate your current folder structure in Author-it Cloud.
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Modify your current folder structure for Author-it Cloud.
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Use the Files module's default folder structure.