How to Produce Cesium Terrain Data?

Hello there,

I would like to be able to set up a Cesium Terrain Server for usage on a private network. I am having trouble getting the correct Cesium Terrain Data for this purpose.

I have read through the following forum posts:
https://groups.google.com/forum/embed/?place=forum/cesium-dev&showsearch=true&showpopout=true&hideforumtitle=true&parenturl=http%3A%2F%2Fcesium.agi.com%2Fforum.html#!searchin/cesium-dev/custom$20terrain$20server/cesium-dev/74a5XriE-eM/jns0RsaWetYJ

https://groups.google.com/forum/embed/?place=forum/cesium-dev&showsearch=true&showpopout=true&hideforumtitle=true&parenturl=http%3A%2F%2Fcesium.agi.com%2Fforum.html#!searchin/cesium-dev/custom$20terrain$20server/cesium-dev/TegEceuLwxo/B_CIEQ9YSVwJ

https://groups.google.com/forum/#!topic/cesium-dev/rBieaEBJHiU

I have downloaded SRTM data which is already process and in the ".tif" format (among a couple of others)from the following, site http://gis-lab.info/data/srtm-tif/ . I am also attempting to use GDAL2Tiles.py to create tiles out of this data, but GDAL2Tiles.py, by default, outputs these as ".png" files. I have been having trouble modifying GDAL2Tiles.py to output ".tif". Has anyone done this before?

It is my impression (from reading forum posts) that the next step would be to convert the ".tif" files to ".png" files with the Cesium height encoding technique using custom code adapted from the "proxy" project in the Cesium tree. I am not to this point yet.

I also read that it may be possible to cache terrain tiles locally. How would one go about doing this?