The Datadog Solutions Team uses Vagrant to manage local virtual machine environments for reproducing customer issues, but they found setting up full reproduction environments took time and learning was a challenge. To expedite the setup process and make their team more efficient, they utilized Vagrant's provisioning feature to run configuration management tools like Chef, Puppet, or Ansible, and created a shared GitHub repository for virtual machines with pre-built Vagrantfiles and setup scripts. They later integrated Terraform into their workflow, using it to provision reproduction environments on small EC2 instances and share them with teammates, resulting in improved scalability and collaboration. The team is now exploring ways to further modularize their setup scripts and introduce additional features like Consul for managing terraform states.