We go the VM route as well. We have a base VM with all the applications and development tools installed, and clone it for each new developer that we on-board. We have an internal HyperV based solution for hosting the VMs and the cost works out to about 250-300 per month depending on usage, but it's worth the cost...
If you need to set up a base VM, set it up natively on a desktop / laptop and create a VM from it using VirtualBox / VMWare / Parallels ... You can then distribute this VM or host it on a VMWare server
If you need to set up a base VM, set it up natively on a desktop / laptop and create a VM from it using VirtualBox / VMWare / Parallels ... You can then distribute this VM or host it on a VMWare server