What's in Mendocino?

A group of former IBM Consulting Group buddies met yesterday at StrandPauli, where we talked about the good old times and current industry topics, one of which was Mendocino. According to one guy who works at SAP in Waldorf these days, the reason for calling the SAP/Microsoft initiative Mendocino is that this California town sits in between Palo Alto, CA, the home of SAP Labs, and Redmond, WA, where Microsoft is located. Does it mean anything that Mendocino is much closer to Palo Alto? Shouldn't the two firms have picked a town in Oregon, sort of the DMZ between CA and WA?