Can you please let me know if there is a way to migrate my whole instance (includeing all the configuration i made to the schemes) from jira on permise into jira on demand?
Yes, it's possible
But you should first review the limitations of Ondemand compared to on premise JIRA, as there are many add-on that are not available for OnDemand, so your project might not work as expected and event you might not be able to import the data in some cases.
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