Restored library in the cloud.

I just tried to restore all my itunes library onto my new laptop but everything is in the cloud. Even though I have tried to transfer the itunes media files from an external hard drive to my new laptop itunes media file.

Could it be because when I downloaded the itunes application on my laptop I didn't sign in with my old apple id? I tried several times but it wouldn't let me until I created a new id. I have authorised this laptop to my old apple id so I don't know why it allow the music to be there and not in the cloud.

I also would like to synch my iphone but itunes is saying "do I want to erase everything on my phone and replace with the laptops library" which I don't think I want to do as it is all in the cloud.

I have a slow internet connection and not a great amount of data so don't want to download everything from the cloud.

many thanks