Microsoft has finally announced its worst kept secret: its new search engine is called Bing.

Bing is being pitched by Microsoft as a “decision engine.” As Bing isn’t live yet we can’t be 100% sure on the overall use, but given the demo video and specs, we’ll give it a shot.

Bing essentially adds a smart sorting layer on top of search results, sort of Wolfram Alpha but not complete rubbish. Bing takes results and presents them in a way it thinks you will find more helpful. For example, a search for a hotel delivers formatted reviewed and more in depth results than Google. Bing is starting with four specific formatted verticals: “making a purchase decision, planning a trip, researching a health condition or finding a local business.”

For general search results, Microsoft also offers a variety of automatic sort options. Along with a sidebar list of content choices and related queries, search results are often grouped (clustered) as well. As Danny Sullivan points out, a search for Obama offers sub groups of Obama speeches, Obama quotes, Obama biographies and more.

Those who have had the opportunity to try Bing are saying that it’s not a Google killer, but it was never going to be. Microsoft appears to be targeting a niche, specifically structured results around consumer queries, and it’s a sound tactic. Even if millions aren’t going to abandon Google, Bing could become a strong destination for search queries with in the targeted niche areas. If Microsoft can get Bing’s share up into double figures, and maybe even up to 20%, it will be a huge win for a company that has always struggled online.

Here’s the Bing demo video. I don’t know who ripped it and put it on YouTube, but the fact I couldn’t embed the original from the Bing site says that to some degree, Microsoft still has a fair bit to learn.