Microsoft says it plans to retire its storied—and often maligned—Internet Explorer brand in favor of a new Web browser under a different name.

The rebranding is a part of its upcoming Windows 10 software overhaul. Internet Explorer will still be available, but the new browser, which goes by the tentative code name Project Spartan, will become the default browser for Windows 10 users, according to a Microsoft representative.

Introducing a new browser brand is almost a necessity for Microsoft, S&P Capital IQ analyst Angelo Zino said in an interview Tuesday with CNBC.

Users have turned to Google's Chrome browser and Mozilla Firefox in recent years, forcing Internet Explorer from an 80 percent market share in 2007 to about a 30 percent share now, Zino said.

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The drastic shift to the mobile Web drove users away from Internet Explorer, Zino added.

"What it tells us is that [Microsoft] essentially failed in their expansion efforts within mobility," Zino said.

A new Microsoft browser will have to take a wholly different approach from what's currently available, according to Trip Chowdhry, managing director of equity research at Global Equities Research.

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"The new Browser from Microsoft will only be successful if it is 180 degrees different from what's currently available from Google or Firefox," Chowdhry said in an email, adding that it should be available on all devices and it should focus on privacy.

Microsoft's new browser will deliver a clean, intuitive experience, include a reading mode for a simpler text layout, as well as the ability to make annotations on Web pages using a pen or keyboard, the company said.