Yeah, you're conflating a couple different not-entirely-related topics there.
Cesium has various terrain provider adapter classes that let it request and parse different terrain data formats. For example, the CesiumTerrainProvider class knows how to parse the "heightmap" and "quantized-mesh" file formats that the Cesium team has defined. The GoogleEarthEnterpriseTerrainProvider and VRTheWorldTerrainProvider similarly parse terrain data from the formats provided by those servers. Once that data has been parsed on the client side, Cesium can draw the 3D mesh appropriately.
For the CesiumTerrainProvider in particular, the question of which server it's requesting data from is a totally separate concern from how Cesium then renders the data, and how the rest of Cesium's rendering pipeline interacts with that rendered mesh (such as polylines/points/etc being drawn relative to the terrain mesh).
Cesium expects both quantized-mesh and heightmap terrain data to be available in the industry-standard TMS file structure, with individual tiles available at
$SERVER/zoom/x/y.terrain . Normally this is individual tile files on disk in that exact structure, so you would use a standard static file server (ie, literally any HTTP server). However, since storing millions of individual tile files is inefficient, the MBTiles container format was created as a way to store all those individual files as blobs in an SQLite database (
https://github.com/mapbox/mbtiles-spec ,
https://wiki.openstreetmap.org/wiki/MBTiles ). It was originally meant for use with tile map images, but works exactly the same if you stuff Cesium terrain tiles inside. Serving tile files out of an MBTiles container requires a bit of logic for the server to query and retrieve the tile blobs from the database, but the logic itself is trivial.
What Patrick is saying is that AGI is improving several aspects of Cesium's terrain-related capabilities. They have a new/updated AGI-hosted terrain dataset, and are continuing to improve the quality and contents of that terrain dataset. They're also working on adding some much-requested rendering capabilities that relate to how Cesium handles terrain. So, both terrain-related, but independent topics.
Per my comment earlier, there's not too much documentation out there on self-hosting terrain data, which is one reason why I plan to write some blog posts on the topic. Here's the most relevant articles I've found in my own research:
https://cesiumjs.org/data-and-assets/terrain/formats/quantized-mesh-1.0/http://blog.mastermaps.com/2014/10/3d-terrains-with-cesium.htmlhttps://www.linkedin.com/pulse/fast-cesium-terrain-rendering-new-quantized-mesh-output-alvaro-huarte/https://bertt.wordpress.com/2016/12/08/visualizing-terrains-with-cesium/