One often asked question is how to configure a development with multiple developers. The options span from having a silo for each developer where they host AX, AOS, SQL, etc. locally, to a shared setup where each developer only needs an AX client. These options can be combined with the use of a version control system, such as Team Foundation Server or MorphX VCS. Further the capabilities and infrastructure requirements are quite different among the options.

To describe the options and their capabilities Microsoft has published: Microsoft Dynamics AX 2012 White Paper: Developing Solutions in a Shared AOS Development Environment

The first paragraph of the white paper is:

Developing for Microsoft Dynamics ®AX is best done in an environment where each developer has a full Microsoft Dynamics AX installation that runs on a single box. The developer artifacts are synchronized by using one of the supported version control systems in Microsoft Dynamics AX, and solutions are produced by running a build of the sources in the version control system (VCS).(Emphasis mine).

The rest of the white paper is describing consequences of using other configurations, such as a shared AOS. While there are multiple desirable traits of a shared environment, for example simpler infrastructure and the ability for developers to quickly change project, these benefits come at a cost. I encourage you to make an informed decision when selecting your configuration based on your needs and this whitepaper.