We have 3 years worth of air photos with about 5000 individual images each year. Each image has a 20cm spatial resolution and comes in different formats from .sid, .jpeg200, or .tiff
We currently have them hosted but I don't think we've done it in the best way possible.
Currently we create a mosaic dataset and share that as an image service with more or less the default settings.
Here is a great site that the Esri Imagery team has compiled for use: https://doc.arcgis.com/en/imagery/workflows/
It is a great place to start.
Imagery and Remote Sensing ArcGIS Image Server