Being able to bring the whole application up locally should be an absolute non-negotiable.
This usually doesn't work that well for larger systems with services split between multiple teams. And it's not typically the RAM/CPU limitations that are the problem, but the amount of configuration that needs to be customized (and, in some cases, data).
Sooner or later, you just start testing with the other teams' production/staging environments rather than deal with local incompatibilities.