So Solidworks give you the option to use the vault to manage your toolbox vs having the toolbox installed on your local machine. We have a small shop here with less than 10 users.
What are the pluses and minuses of installing the toolbox locally vs installing and using it from the vault?
Main thing to determine this is do you customize your toolbox. The recommendations would then be as follows:
Store toolbox in PDM (customized)
Store toolbox on the network (both)
Store toolbox locally (not customized)
Personally I don't like when the toolbox is stored in PDM as it gets difficult to manage this CORRECTLY. If its just default toolbox then I would rather just have each user use the default local copy. If you customize your toolbox but don't need this revision controlled then I would recommend just storing this on a network drive.
If you do need revision control on your toolbox then you should use PDM. With his option you will want to properly configure each part of the toolbox settings and make sure your vault is setup properly with workflows to handle this data. You will also want to make sure that you understand the different upgrade procedure that exists for when you have toolbox stored in PDM.
The big plus and minus here is that storing the toolbox in the vault take a fair amount of setup and understanding when compared to just having this on the network or locally.