Test bed is the enviorment, where the testing is supposed to be done. Setting up the hardware and software requirements before starting testing is known as testbed.
Test Bed: An execution environment configured for testing. May consist of specific hardware, OS, network topology, configuration of the product under test, other application or system software, etc. The Test Plan for a project should enumerated the test beds(s) to be used.
A Test Bed environment containing the hardware,instrumentation tools,simulators and other support software neccessary for testing a system or system componet.