I think that's backwards. I was there. Aside from a few e.g. banking and government applets one was forced to use and a couple of exceptions, applets never got anywhere and died fast.
Enterprise Java became what Java is all about very very soon. Java landed in 1996. Servlets/Tomcat landed in 1998.
By 2000 there was plenty of enterprise Java development - in fact that was the year MS created its own Java copy, in the form of C#/.NET after having tried to extend their version of Java for the Windows platform.