Cesium has support for terrain in either a heightmap or quantized mesh format. We tend to see better performance with quantized mesh because it is optimized to work well on the web. AGI (the company that founded Cesium and employs most of the team) has a commercial product available to help convert your terrain data into a quantized mesh that can be used with Cesium. You can find out more information about that here: http://www.agi.com/products/stk/terrain-server/
For imagery, Cesium has support for many different formats, but the imagery needs to be tiled. I think you can use gdal2tiles to convert a jp2 into TMS tiles that can be added to the globe. Alternatively, we are working on developing a web service where you can upload geotiffs and we’ll convert and host them for you. See https://cesiumjs.com/ for more information. The service isn’t available yet, but you could sign up for the newsletter if you’d like to receive future announcements.
Also check out these tutorials on terrian and imagery: