That's definitely false. We've had Microsoft's TFS as the source control system when I started working there about 4-5 years ago (I no longer work at ms). We also had two levels of stage servers, several for the dev code branch, and a couple for the prod branch. Eventually each team had their own set of stage servers. Stage servers were crucial since some parts of the infrastructure were not testable in dev, so to say we didn't have any is to not be at all familiar with ms's development setup.

BTW, I'm not normally this animated with my comments, but the article was so full of such baseless conjecture I as truly appalled. I actually had a good deal respect for Scoble prior to reading that. MS had a ton of problems, but it definitely had a number of great people working on technology and doing a pretty good job at it - otherwise we would have been friendster.