IMHO that didn't happen, the integration morass remained, and I'd consider much of that model a failure in retrospect.
On the infrastructure front, I seem to remember a lot of talk about Frame Relay (EDIT: actually I was thinking of ATM, thanks for correction below). And fiber installs all over the place, lots of money in getting fiber into downtown areas, etc. Also I don't think people really predicted the possibility of the dominance of the "cloud" as it is now, really. I mean, hosting services were I'm sure a growth market but "serious" companies were seen as wanting to have their own DCs, and I don't recall major talk or trend away from that until the mid 2000s ("SaaS" etc. became the buzzword around then, too).
Also JavaScript as a serious presentation layer system wasn't much talked about until the 2000s.