To help answer some of the questions on the background of the MRF file format and LERC compression I have attached a document that provides a technical overview. If there are general questions of comments please add to this post.
Is there a way to convert to the MRF format with the LERC compression using ArcGIS? If not, what are some of the ways we can convert existing raster data to the MRF format?
Support conversion of rasters to MRF (using copyraster) is included in upcoming ArcGIS 10.4. We will also soon be releasing a set of external tools that can be used to batch convert collections of imagery to MRF and also upload to blob storage such as Amazon S3 and Azure BlobStore.
Update: The external tools Peter mentioned in 2016 are available for download - see http://www.esriurl.com/OptimizeRasters
Retrieving data ...