Microsoft is forming a joint venture with Andersen Consulting, the management consultancy, aimed at spearheading the use of Windows 2000 and other Microsoft products in large-scale corporate e-commerce systems.

The joint venture, called Avanade, will be established as an independent company that will eventually be spun off through a public stock offering. In addition, Andersen will create an internal group of 3,000 business consultants dedicated to applications of Windows 2000.

The companies put a "very conservative" value of $1bn on the assets they will dedicate to the pact. Microsoft will contribute $385m to Avanade.