Ruby/RoR development: locally or server
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our company has started development of own systems "in-house". We already got couple of developers, who will be responsible for writing code in Ruby/RoR.
We are currently discussing about infrastructure and I would like to ask people with good experience, so my question will be:
How it's better to develop Ruby application? 
two options at the moment: develop everything on local machines, then put it to test server and later to production or develop everything on development/test server, then publish it for testing and later to production.

