This paper describes the design of an OIF-approved 10Gbps very short reach parallel optical interconnect demonstrated system. It is a 12x1.25Gb/s channel parallel optics solution, leveraging the low cost transceiver (850nm VCSEL), and CMOS (SERDES) technologies originally developed for Gigabit Ethernet. The demonstrator comprises of SONET/SDH serial OC-192 interface, CPLD based convert IC, 1.25Gbps 12-channel parallel optical transmitter and receiver. The transmitter includes a 12-channel array of 850nm VCSEL, a 12-channel VCSEL driver LSI, and a precise coupling structure for 12 multi-mode-fibers ribbon. The receiver consists of a 12-channel array of pin-PDs, a 12-channel receiver LSI, and a precise coupling structure for 12 multi-mode-fibers ribbon. A CPLD chip, which maps the OC-192 framer onto the parallel optical links, and reassembles it after detection, has been developed. We also present the coupling package configuration for VCSEL arrays to fiber ribbon.