I suppose if all forwarders will be on prem.
As 1st step would be to migrate the License Master on-prem by making it slave and pointing to LM on-cloud instance . Check out the 8089 port connection from on-prem to Cloud Instance
Then again you can work on migrating the Cluster Master, Indexers and SH to Cloud instances and point it to the LM oncloud instance.
Splunk gives a grace of 72hrs to fix the license issues.
Cheers!!! All the best
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