what are the best tools to setup VM or Virtual Machines to test automation testing scripts

There are many tools available but these are some of the famous tool

We have two types of VMs

1) Cloud based
2) On local machine

1) Cloud based
Windows azure server it is cloud based you can open this VM from any where can work on cloud.

For linux based we have
FUJITSU and Amazon web services, and also Sauce labs provides cloud based VM's with different set of Browsers.


2) On local machine
Most Famous  ones are

Virtualbox this is Oracle based product.
Vmware
And window will provide some images  by using those images we can setup different OS of Windows.