It’s apparent from the latest report from Microsoft that the software company is still struggling to compete with search giant Google. On Monday, a spokesman of Microsoft reported that the company is internally testing a new version of its online search service codenamed as “Kumo”

The first information about Kumo.com, the new service under test, was disclosed though an internal memo sent by the head of research at the company's online services division. However, the internal memo did not disclose details about the new service.

In the internal memo, Satya Nadella said, "Kumo.com exists only inside the corporate network, and in order to get enough feedback we will be redirecting internal live.com traffic over to the test site in the coming days. Kumo is the codename we have chosen for the internal test."

"We believe we can provide a better and more useful search experience that helps you not just search but accomplish tasks. An explorer pane on the left side of results pages will give you access to tools that help you with your tasks,” said Nadella, who believes that the company can bring out a better search engine than the one currently available.

Currently, the new services is not available outside the company, but it is definitely viewed as the Microsoft's new weapon to battle with the search leaders Google Inc and Yahoo Inc.

According to the reports, Microsoft chief executive Steve Ballmer may outline the new search service on Wednesday, at Microsoft's regular Valued Professional (MVP) summit.