You can certainly load all the rasters into an Oracle database with ArcSDE (as a mosaic,
or a catalog of mosaics, since they perform better), but if you're going to serve this data
out through ArcGIS Server and you're going to cache the map service (which you should),
then it may not be worth the storage and load time to bother. The ArcGIS Server Image
Extension (nee Image Server) could also be used to produce maps of this type.
Once you have a map service prepared, you can choose which formats you want the
service to support, (and if you're using Image Extension, whether you want users to be
permitted to download the base data used to make each map).
- V