Commonly used softwares are Terrasolid, Arcgis,ENVI LiDAR, Lastools etc. Arcgis is a professional GIS software which provides DEM interpolation methods such as Polynomial, Kriging etc. However, the generating speed will be slow if the point cloud data is too large. Another would be Lidar360. It is a commercial processing software which handles large datasets well. It can also provide a variety of dem generation methods such as tin, idw, kriging etc
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as mentioned, Lastools is awesome and has open source components
CloudCompare can rasterize, export til geotiff. - that's open source. - great one.