We currently have SVN setup on a remote development server. Developers SSH into the server and develops on their sandbox environment on the server. Each one has a virtual host pointed to their sandbox so they can preview their changes via the web browser by connecting to developer-sandbox1.domain.com. This has worked well so far because the team is small and everyone uses computers with varying specs and OSs.

I've heard some web shops are using a workflow that has the developers work off of a VM on their local machine and then finally push changes to the remote server that hosts SVN. The downside to this is that everyone will need to make sure their machine is powerful enough to run both the VM and all their development tools. This would also mean creating images that mirror the server environment (we use CentOS) and have them install it into their VMs. And this would mean creating new images every time there is an update to the server environment.

What are some other trade-offs? Ultimately, why did you choose one workflow over the other?